PRACTICE - TRAINEESHIP€¦ · for traineeship, for several years now. In 2010 the European...

Zaštita radnih prava mladih na tržištu rada kroz aktovne mjere zapošljavanja”. Projekat finansira EU posredstvom Delegacije Evropske Unije u Crnoj Gori .

COMPARATIVE STUDY ON EU AND SEE

PRACTICE - TRAINEESHIP

INTRODUCTION

There has been increased attention to the issue of traineeship quality in the European Union (EU) in

recent years. In both EU Member States as well as at EU level, there has been intensified debate

about the risks associated with low quality traineeships. Various EU institutions have taken part in the

debate and there is ongoing institutional discussion in the EU on how to promote a common

traineeship quality framework.

The motive for the debate is clear. The EU crisis has exacerbated youth unemployment and has

prolonged the transition from school to the labor market. This has brought about increased interest in

traineeship as a mechanism for integration of young people into the world of work.

There is a common understanding that quality traineeship can effectively equip young people with

professional skills needed in the work place, strengthen their employability, and facilitate their

integration into the labor market.

However, there have also been rising concerns about the quality of traineeship arrangements across

the EU. Fears have emerged that traineeships may be used as a source of free labor; that they do not

effectively play their educational role, and that they may be keeping young people in situation of job-

insecurity.

In view of this challenge, there has been increasing talk at EU level of promoting a quality framework

for traineeship, for several years now. In 2010 the European Parliament “called1 specifically for better

and secured internships; for a European Quality Charter setting out minimum standards for

internships to ensure their educational value and avoid exploitation; and for young people to be

protected from those employers who are "exploiting the willingness of young people to learn...”2

A recent European Commission (EC) documents on the issue, titled Commission Recommendation on

Principles for High Quality Traineeships3 documents the chronology of efforts at EU level. According to

the document “the “Council Conclusions on youth employment (adopted on 17 June 2011) ... invite[d]

the Commission to prepare a quality framework for traineeships. The June 2012 European Council

1

European Parliament Resolution EP 2009/2221(INI) of 14.06.2010 2 Quality Framework for Traineeships, Commission Staff Working Document,SWD(2012) 99 final 3 October 2012

confirmed the urgency to address youth unemployment, 'in particular through the Commission's

initiatives on youth guarantees and the quality framework for traineeships...'.”4

According to the same document, “in the Europe 2020 flagship initiative 'Youth on the move'

(adopted in September 2010) and later in the Youth Opportunity Initiative of December 2011 the

Commission announced the launch of a Quality Framework on Traineeships by the end of 2012.”5

The document also notes that “in its communication 'Towards a job-rich recovery' of April 2012 the

Commission clarified its intention to present a proposal for a Council Recommendation on a Quality

Framework for Traineeships by the end of 2012.”6

Further, according to the document “as part of the Employment Package of April 2012, the

Commission launched a public consultation on a proposal for a Quality Framework for Traineeships.7

As part of the this process the EC has commissioned a EU-wide study on traineeship arrangements

which has been completed in May 2012.8 The study provides comprehensive national reports of

traineeships arrangements from all 27 Member States and combines the findings in a final synthesis

report. The study is likely the most comprehensive research into traineeships in the EU to date. The

findings of the study should inform the ongoing debate about the quality framework for traineeship

in the EU.

The following pages represent an effort to extend the study of traineeship arrangements into the EU

member, candidate and potential candidate countries9 in Southeast Europe. The study included 5 EU

member state countries: Cyprus, France, Germany, Italy and Slovenia and 4 countries from the SEE

region: Bosnia and Herzegovina, Croatia, Macedonia, and Serbia. The research involved a desk study

of legal texts, documents, and media articles related to the issue of traineeship in the region. The

study of legal texts and documents included a broad range of regulation relating to employment,

social and health security, civil service, higher education, active labor market policies (ALMPs),

volunteer work, and so forth. In addition, the media review focused on the public debate on the issue

of traineeship quality in the countries in the region. The research also extended to additional

secondary sources, such as related analyses, surveys, etc.

4 Commission Recommendation on Principles for High Quality Traineeships, p.1 5 ibid 6 ibid 7 ibid 8 See Study on a Comprehensive Overview on traineeship arrangements in Member States, IES, IRS, and BIBB, May

2012 9 As of the writing of this introduction,Croatia, whose accession is scheduled for 1 July 2013, is only days away

from becoming the 28th Member State.

The EU documents resulting from the recent debate regularly note the fact that traineeship is difficult

to define and that there is no common definition of traineeship. They also note the fact of the

terminological dissonance surrounding the use of terms such as traineeship, apprenticeship,

internship, etc.

This study has adopted the approach of the recent EC SWD , Quality Framework for Traineeships,

which insists on the use of only one term: traineeship which it defined as:

“a work practice including an educational component (either as part of a study curriculum or not)

which is limited in time. The purpose of these traineeships is to help the trainee's education to work

transition by providing the practical experience, knowledge and skills that complete his/her

theoretical education.”10

According to the approach of the EC's Quality Framework for Traineeships, an apprenticeship is

different from traineeship in that “ it is rather a systematic, long-term training of a technical

occupation with alternating periods at the workplace and in an educational institution or a training

center.”11

This study has assumed a consistent approach and it has excluded apprenticeships from its

scope.

Policy recommendation

Some of the main recommendations for improving the effectiveness of traineeships consist in:

• There is a need for a clear definition of traineeships at EU and SEE level. Given the great variety of traineeships, this definition may outline the key aims and features of these schemes, while leaving some space for the specificities of particular types.

• There should be more support to include traineeships as a part of study curricula, where possible traineeships should take place during studies and not after graduation.

• A concerted effort should be made at EU, SEE and national levels to increase the supply

of traineeships, especially in SMEs.

• There is a need for a Quality Framework for Traineeships offering clear and practical guidelines about high quality traineeships.

• There is a need for some financial support to trainees, especially those from less privileged backgrounds.

• Steps should be taken to encourage open and transparent recruitment processes for

traineeships.

10 p.4 11 ibid

• There is a need for more robust data on and evaluation of all types of traineeships at

both national and EU levels. This includes both quantitative and qualitative data which can be.12

12

European Commission, Employment, Social Affairs and Equal Opportunities DG (2012), Study on a comprehensive overview on traineeship arrangements in Member States, http://www.google.it/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CDgQFjAB&url=http%3A%2F%2Fec.europa.eu%2Fsocial%2FBlobServlet%3F

docId%3D7754%26langId%3Den&ei=OUmwUe2hG8asPbaYgcAB&usg=AFQjCNG2f_ADjMLv6mlWCkveuGnDrZ9Ciw&bvm=bv.47534661,d.bGE

EU COUNTRIES

Towards a traineeship quality framework:

comparative analysis of youth labor market

rights in selected EU member states and

acceding countries

1 Executive summary

The present report focuses on traineeships as a measure to fight youth unemployment in five countries: Cyprus, France, Germany, Italy and Slvenia.

The main findings of the case studies are synthesized below.

I. Youth unemployment: an European challenge

Youth unemployment is one of the biggest challenges facing Europe, especially in the context of the current economic crisis. In 2011, in EU the economic loss due to the disengagement of young people from the labour market was €153 billion, corresponding to 1.2% of European GDP. In 2011, youth unemployment reached a record level of 5.5 million, although with considerable variation across the Member States. At over 22%, the rate of youth unemployment is more than twice as high as the general rate of unemployment (European Commission, 2012). Figures speak by themselves:

• NEET rate (2012): 12.5% for men and 13,4% for women aged 15-24 years old;

• Unemployment rate: 23.3% for men and 21,8% for women aged 15-24 years old;

• Long-term unemployment rate: 6,9% for men and 5,7% for women aged 15-24 years old.

In the analysed countries, the highest youth employment levels are registered in Germany, while the lowest in Italy.

Figure 1 - Youth employment in EU between 2007-201113

13

European Foundation for the improvement of living and working conditions, NEETs Young people not in employment, education or training: characteristics, costs and policy responses in Europe, http://www.eurofound.europa.eu/publications/htmlfiles/ef1254.htm

Indeed, young workers are usually the first hit by recessions because they are the least experienced and more often employed under temporary contracts. Unemployment among young people is typically higher than for adults; as young people make their way from formal education and training to the world of work some period of transition is to be expected. Nevertheless, a slow or difficult transition to the labour market can have a lasting, scarring effect on the individual over their lifetime.14

II. Traineeships: a measure to fight youth unemployment

As shown in the figure below, there are different measures that are aimed at tackling youth unemployment.

14 Eurofund, Effectiveness of policy measures to increase the employment participation of young people

Measures aimed at reintegrating early school leavers and measures aimed at facilitating the transition from school to work include traineeships among the interventions foreseen.

In all analysed countries, traineeships have been increasingly used in the last years as measure

aimed at fighting youth unemployment and ensuring an easier transition from school to work.

Table 1 Programmes aimed at tackling youth unemployment, including traineeship measures Country Programmes aimed at tackling youth unemployment, including traineeship measures

Cyprus • Plan for Graduate Company Recruitment • The Plan for Accelerated Company-based Initial Vocational and Education Training • Traineeships within the formal education system (at both secondary and tertiary levels)

France • Plan d’Urgence pour l’Emploi des Jeunes (Emergency Plan for Youth Employment) • Plan Espoir Banlieues (Hope for the Suburbs Plan) • Acting for Youth Strategy

Germany Italy • Italian 2020 Action Plan for Youth Employment

• Local Youth Plans • Youth Guarantee Schemes and financial support • The 2012 labour market reform • FIXO programme

Slovenia • Graduate – activate yourself and get the jobs” • After studies into employment programme • Project learning for young adults

III. No standard definition of traineeships and trainees

In the analysed countries, there is no standard definition of what a traineeship is or of who are the

trainees. Definitions vary across countries and within the same country, based on the type of traineeship programme. However, generally, the trainee is a pupil, student or graduate who is

temporarily working to acquire experience on the job.

The table below offers an overview of the definitions used in the analysed countries.

Table 2 Definitions of traineeships and trainees Country Definitions of traineeships and trainees

Cyprus no specific definition of traineeships. However, different terms are used for defining traineeships: internships for short-term placements in companies as part of either university study curricula or those available in the open market; practical experience placement for those associated with mandatory professional training.; work experience placement traineeships linked to programmes targeted at facilitating youth labour market transitions.

France Traineeships are based on a compulsory written agreement (Convention de Stage) signed between the trainee (stagiaire), the sending organisation (education institution) and the host employer. The agreement includes the aims and objectives of the traineeship, its learning content, duration, roles and responsibilities of all parties involved, the supervision and quality mechanisms; and the trainee’s terms and conditions, including wage and social security coverage.

Germany No specific definition of traineeship. However, according to the court case law a trainee is a person that is “employed to gain knowledge, practice and professional experience”. Therefore, the trainee status is linked to a learning purpose. Moreover, according to the Federal Ministry of Labour and Social Affairs, traineeship is that type of employment which is directly related to an increase in the skills of the trainee. If the qualification aspect lacks, an employment cannot be defined as traineeship even though contractually identified with the traineeship label. Where this occurs, traineeship regulations should not be applied and employment should be subject to the labour market legislation.

Italy No standard definition. Various definitions based on the type of traineeship programme Slovenia traineeship refers to a person who starts to carry out work appropriate to the type and level of

professional qualification for the first time, concludes an employment contract as a trainee in order to gain ability to carry out his job independently

IV. Different types of traineeships within the same country

In the analysed countries, there is not a single traineeship programme, but different types of traineeships are promoted.

1. Traineeships as part of active labour market policies

These types of traineeships have been increasingly used to promote youth employment in a crisis context. They are part of programmes aimed at supporting youth’s entry and maintenance on the labour market. They are targeted at:

� Growing number of unemployed young people due to the crisis (Cyprus, France)

� Low skilled or unqualified young people due to early school leaving (France)

� Young people at risk of social exclusion (Cyrus, France)

Some examples of such traineeships are:

� Cyprus: The Plan for Accelerated Company-based Initial Vocational and Education Training, combining theoretical, school based education and training with practical work experience through traineeship programmes in companies;

� Slovenia: “Graduate – activate yourself and get the jobs” aimed at matching the requests of the labour market with those of the job demand. The employers that take part to the programme have to provide a six months traineeship with a mentor.

� France:

• Unique Inclusion Contract (Contrat Unique d’Insertion/CUI) introduced in 2008 and revised in 2010. Accordingly, the CUI consists in the Contrat Initiative-Emploi/CUI-CIE for the private sector (for profit) and the Contrat d’Accompagnement dans l’Emploi/CUI-CAE for non-profit sector and aims to facilitate the labour market integration of unemployed young and adult people with high difficulties in getting on the labour market.

• The Autonomy Contract (Contrat d’Autonomie) introduced in 2008 and implemented

within the Plan Hope for Suburbs (Plan Espoir Banlieue). It aims at offering personalised accompaniment and support to unemployed young people so as to allow them to acquire qualifications through training and/or access to sustainable employment. The contract lasts maximum 18 months (of which 6 months are for the required follow-up and accompaniment at work). During the traineeship, the trainee is paid 300 euro per month and has access to other benefits such mobility,

training, etc. However, due to its high costs, this scheme was interrupted in 2011.

• The Integration Contract in Social Life (CIVIS - Contrat d’Insertion dans la Vie

Sociale) introduced in 2005 within the Social Cohesion Plan. It foresees measures of assistance and personalised support to young people with difficulties in entering the labour market. It targets young people aged 16-25 either with a qualification level equivalent at most to ISCED4, or those who have not completed their lower secondary education, or registered as unemployed for more than 12 months over the last 18 months. The accompaniment measures go beyond the occupation of the person participating to this programme. In fact, personalised assistance lasts for a year after the young person secures employment.

2. Traineeships in the Open Market

In recent years there has been an expansion of traineeships which young people undertake in the open market, typically after graduation and/or the completion of mandatory professional training. Such traineeships can be classified in three distinct groups: (i) structured traineeships

which form part of Graduate Trainee Schemes, usually run by large organisations and/or multinationals; (ii) traineeship schemes promoted by Governments as part of youth-related employment programmes, including those targeting graduates; and (iii) traineeships offered in

the open market on an ad hoc basis by organisations.

This type of traineeship is usually extremely criticised due to: The low or non-existent learning content which relates to trainee’s developmental needs (in Germany, France, Italy)

• poor terms and conditions, including low or no pay, lack of social security coverage or health insurance, no sick or holiday pay, etc. (France, Italy, Slovenia)

• trainee exploitation, including heavy workload &/or long working hours (France, Italy, Slovenia)

• replacement of regular staff by trainees who are used as cheap or even free labour (Germany, France, Italy)

• failing to help trainee secure quality employment(Germany, France)

However, some good practices exist in Cyprus and Germany.

For instance, in Cyprus the Scheme for the Job Placement and Training of Tertiary Education

Graduates aimed at fighting graduate unemployment by supporting graduates to acquire practical company-based work experience through 6 months traineeships obtained significant results: 1.533 placements realised between 2009 and 2012 and 119 in the first three months of 2013. 90% of participants got a job 6 months after the programme end and 76.5% of participants were employed in the enterprise that trained them. Traineeships

In Germany the traineeships after graduation aim to prepare university graduate and executive positions. For instance, “Volontariat” traineeship programme is particularly common in media and advertising. Traineeship duration varies, but within two years the trainee is expected to acquire skills requested within these sectors. 24% of the university graduates work as trainees after graduation.

3. Traineeships as Part of Educational Programmes

They are the most common in all countries analysed. Generally, they are based on a contract between educational institution, employer and student, including:

• scope, length and learning content, including trainee’s tasks and activities

• trainee terms and conditions

• supervision and evaluation mechanism for traineeship.

Moreover, the education institution is usually responsible for the quality of traineeships.

Evaluations on traineeships underline that Educational systems which integrate theoretical knowledge with work-related practical training are more effective for school-to-work transition.

The table below offers an overview of the main traineeships in education in the analysed countries.

Table 3 Traineeships in the education system Country Traineeships in the education system

Cyprus • Traineeships as part of Upper Secondary Technical and Vocational Education (STVE) –

Practical Pathway are is aimed at offering students aged 15-18 years old with both theoretical and practical skills aimed at easing their transition from school to work. The scheme lasts three years: the first two years are dedicated to school activities, while the last one to work experience. Trainees have to spend one day a week (20%) in a company.

• Practical Training of Students and School Pupils (Higher Hotel Institute/HHIC) are aimed at promoting the acquisition of work experience and skills in specific strategically important sectors, eg tourism and hospitality industry; ICTs; etc. For instance, students of the HHIC have to undertake 4-month traineeships as part of their studies. Secondary and tertiary students are the main targets.

• Short-term student placements in companies are financed within ESF OP and aim at creating linkages between universities and business by setting up Enterprise Liaison Offices and promoting short-term student placements in companies.

France • alternance-based traineeships which are specific types of traineeships based on alternating periods of work and training within an enterprise and a VET provider. Two types of such traineeships are foreseen by the French legislation: � Apprentices, which concerns young people aged 16-26 who wish to continue

their initial vocational education and training with the aim of obtaining a vocational title or qualification.

� Contrats de Professionnalisation introduced within the Plan d’Urgence pour l’Emploi des Jeunes (Emergency Plan for Youth Employment), which are part of the continuing vocational training and are addressed to young people aged between 15-26 and/or jobseekers over 26.

• mandatory and non-mandatory training and traineeships associated with both secondary

and tertiary education. The non-mandatory traineeships are optional and trainees can take them on voluntary basis and include optional/facultative traineeships integrated as options within certain VET curricula/programmes and facultative traineeships not integrated within the targeted qualification curricula/programmes.

Germany • Short-term traineeships: usually are integral part of school education and most often

they are mandatory. Short –term traineeships are addressed to youth aged 14-18 years old

• Traineeships as mandatory part of a school-based vocational training: these types of traineeships are a substitute for the practical part of a dual VET within a certain company, which is characteristic for the German vocational system

Italy • Curricular traineeships within university (Law 196/97 and D. Lgs 142/98 emended by La

92/2012): traineeships included within a study plan at a university as part of a formal course of education, governed directly by the academic regulations of the university. University traineeships include also master’s programmes governed directly by the academic regulations of the schools.

• Traineeships included within Higher Technical Institutes (ITS): traineeships included within Higher Technical Institutes programmes governed directly by the academic regulations of the schools.

• Traineeships within Initial Vocation Training (FPI): traineeships in vocational training programmes, incorporated into scholastic curricula and addressed to students of vocational training courses.

Slovenia work practice is carried out in the school system.

4. Transnational traineeship

They are present in all analysed countries and usually are part of the Erasmus or Leonardo da Vinci programmes.

5. Mandatory professional traineeships

They are present in all analysed countries and are undertaken as part of mandatory professional training in final years of undergraduate studies or just after graduation. They are associated with certain professions:

• Medicine/Nursing

• Law

• Education/Teaching

• Architecture/Engineering

• Well-defined and regulated.

V. No standard legislation regulating traineeships. Within the country traineeships are

usually regulated by different legislation (labour market, education, etc) or none at

all

Legislation varies across countries and depends on: the specificities of the traineeship programme, the funding of the programme (more stricter regulation if financed within public programmes), and legal framework of the labour market and education system. Some countries regulate traineeships explicitly (FR, IT), while others do not regulate them or they only do it within their national legislation on secondary and tertiary education (SL, CY). When regulated, legislation on traineeships includes: its length, the trainees’ benefits and the traineeship agreement between parties.

The table below synthesizes the main traineeship legislation in the analysed countries.

Table 4 Traineeship legislation Country Traineeship legislation

Cyprus There is not a single legal provision of traineeships. Even though there is not an overarching legal framework of traineeships, these are subject to the regulations characterising each programme.

France Since 2006, the French government has adopted specific laws that regulate traineeships/stages. There are two relevant pieces of legislation that regulate traineeships: Code of Education (Code de l’éducation) which includes all legislation regarding IVET and Labour Code (Code du Travail) regulating traineeships and inclusion measures and contracts connected with CVT and labour market active policies and also measures financed within Lifelong Vocational Training’. Furthermore, the 2011 Loi Cherpion aims at strengthening existing regulations and safeguarding trainees from abuses (low pays, work not corresponding to their educational path, etc) by reinforcing their rights through the Convention de Stage. The new law includes the following limits of the duration of traineeships to six months per academic year and seeks to ensure that traineeship is integrated into the educational path of the trainee. Moreover, it increases the involvement of Works Councils in relation to traineeships by requiring that the annual report of companies employing fewer than 300 employees should include information about the number of trainees and their terms and conditions. In particular, it is compulsory that Works Councils in such companies are kept informed on a quarterly basis about the number of trainees, their terms and conditions and assigned tasks.

Germany There is not a unique legislation that governs the traineeship programmes described above. They are subject to different types of legislation. Legislation is different for mandatory and voluntary traineeships. Moreover, some professions are regulated by sectoral agreements. All types of traineeships are subject to the Law on working hours and the Law for the protection of adolescents at work, which states that teenagers less than 15 years are not allowed to exceed seven working hours per day and 35 hours per week. For those from 15 to 18 years the limit is the same at schooldays, which can be extended to 40 hours weekly during holidays. Furthermore, night shifts are prohibited. Mandatory traineeships (both vocational or academic) are subject to school regulations (Schulordnungen) and study and examination regulations of colleges and universities (and Studien- und Prüfungsordnungen). Voluntary traineeships are subject to the same legislation, except for the remuneration foreseen. If in the other cases, remuneration is voluntary, in this case it is mandatory and trainees have the same rights as regular employees (paid holidays and paid illness). Another type of legislation applied to traineeships regard the court case law.

Italy In 2011, legislation on traineeships (Decree No. 138) introduced for the first time a specific distinction between vocational and orientation. Vocational and orientation (non-curricular) traineeships are defined and regulated at the national level by the following laws:

• Law No. 196 of 24 June 1997 ‘Norme in materia di promozione dell'occupazione’ (Measures regarding the promotion of employment), Article 18 (the so-called

‘Pacchetto Treu’). • Interministerial Decree No. 142 of 25 March 1998 ‘Regolamento recante norme di

attuazione dei principi e dei criteri di cui all'articolo 18 della legge 24 giugno 1997, n. 196, sui tirocini formativi e di orientamento’, regulations for implementing principles and criteria in Article 18 of Law No. 196 on vocational and orientational traineeships.

• Italian Ministry of Labour and Social Security Circular No. 92 of 15 July 1998 ‘Tirocini formativi e di orientamento’, vocational and orientational traineeships.

• Italian Ministry of Labour and Social Security Circular No. 52 of 9 July 1999 ‘Stage in azienda’, traineeships in companies.

• Interministerial Decree of 22 March 2006 ‘Svolgimento dei programmi di istruzione e formazione da effettuarsi nei Paesi d'origine dei cittadini extracomunitari', carrying out education and training programmes to be held in the countries of origin of non-EU citizens.

• Legislative Decree No. 138 of 13 August 2011 ‘Ulteriori misure urgenti per la stabilizzazione finanziaria e per lo sviluppo’, further urgent measures for financial stability and development, Article 11 (‘Livelli di tutela essenziali per l’attivazione dei tirocini’, essential levels of protection for activating traineeships), converted with modifications into Law No. 148 of 14 September 2011.

• Italian Ministry of Labour and Social Policy Circular No. 24 of 12 September 2011. After the 50/2005 sentence of the Italian Corte Costituzionale, which established that the Italian Regions have exclusive jurisdiction over vocational and orientation traineeships, national legislation has been applicable only in the absence of regional legislation. However, only 7 regions out of 20 have regulated traineeships; 9 have incomplete legislation and the rest have no specific legislation at all.

Slovenia The main legal source that regulates traineeship is the Employment Relationship Act (articles 120-124) adopted in 2007 in order to regulate employment and contractual issues. Once with the introduction of ERA, traineeships are no longer mandatory except for in three specific sectors: public administration, law and healthcare. According to the ERA specifications, the employers have to conclude a contract with the trainees which cannot be longer than one year. The contract can be extended by six months if the trainee takes part-time work or can be shortened at maximum half of the normal period. The termination of the traineeship contracts is allowed only in extraordinary cases. Trainees have to pass a final exam at the conclusion of their traineeship period. ERA does not limit traineeship to a specific level of the education system, but it goes from ISCED 3 to ISCED 5. The wage awarded to trainees cannot be lower than the national minimum wage and they have the right to earn 70% of the basic salary at the workplace. As to the contents of traineeships, the employers have to provide the trainees with programme-based training for independent work.

VI. No standard legislation on the trainees’ rights across and within the analysed

countries. Trainees’ rights depend on the type of traineeship programme they are

undertaking

Students are not usually covered by employment contracts, but trainee’s rights depend on specific ‘traineeship agreements’. Entitlement often depends on regulations applicable to a particular type of traineeship, its duration and whether the trainee is enrolled in an official programme. Without an employment contract, trainees are entitled only to health insurance and

insurance on accidents at work.

For instance, France, in VET/IVET traineeships, the sending institution is responsible for the sickness and accident insurance coverage of the trainee (‘MP/AT’) if the remuneration is equal to this ceiling and by the employer if it exceeds it; or if they are based on fixed- term employment contract, the trainee is entitled to a salary and all the benefits connected with the status of an employee.

In Cyprus: the employer pays the necessary social coverage and health insurance contributions to the Cypriot Social Insurance Scheme (TKA), the Human Resource Development Authority

(HRDA), and other relevant bodies.

VII. Not homogenous legislation on trainee’s remuneration across countries and within

the same country

In the analysed countries, there is no common definition of what is an ‘appropriate’ remuneration. It is usually linked to a wide range of factors (type of traineeship, duration, experience of trainees, precise form of remuneration, etc). Moreover, in countries with provisions for remuneration this often applies only to compulsory traineeships (VET). Trainees’ remuneration tends to be linked to National Minimum Wage (NMW) for young people or, in few cases, the adult NMW. However, where there is no minimum wage, it is usually determined by

collective bargaining.

Table 5 Trainees’ Remuneration Country Remuneration foreseen

Cyprus the graduate trainee is entitled to monthly compensation (€1,100/month gross at the beginning and €1,150/month gross earnings after six months) (for the 12-month placement)

France a monetary compensation is mandatory if the traineeship lasts more than two calendar months within the same academic year. The trainee’s monthly is set at minimum 12.5 % of the hourly social security ceiling; (alternance-based traineeships) based on employment contract; Contrats de Professionnalisation foresee a payment ranging from 55% to 100% of the minimum guaranteed wage or higher

Germany no precise regulation at the moment; proposed bills foresee payment of trainees (350 euro per month according to the one proposed by social democrats and 300 euro/month according to the one proposed by the Greens)

Italy Not mandatory in traineeships part of the education system. However, with the Fornero reform a 300 euro payment is foreseen for trainees.

Slovenia trainees should receive compensation not lower than the minimum wage, while they are also entitled to earn 70% of the basic salary at the workplace

VIII. One of the main weaknesses of traineeships regards quality assurance and working

conditions

Numerous reports on traineeships have shown that in some cases trainees are exploited and used instead of regular employees as they cost less or are totally free. Moreover, in some cases duties to be performed within traineeships are not at all connected to the educational path of the trainees.

Quality of traineeships is, in fact, a relevant issue in all analysed countries. Quality assurance depends on the type of traineeship and varies across the MS and quality mechanisms can be voluntary or complulsory.

Some examples of successful quality assurance mechanisms can be found in:

• Cyprus:

� the Plan for Graduate Company Recruitment includes a rigorous monitoring of the learning or training plan which both the trainee and the mentor have to fill in. The diary is monthly by the Authority’s inspectors. Furthermore, the host organisation has to submit a report which assesses the graduate’s progress with regards to his/her training performance and work experience every two months.

• France: compulsory quality assurance scheme; educational in charge of quality assurance

� Convention de Stage signed between the trainee (stagiaire), the sending organisation (education institution) and the host employer. The agreement includes the aims and objectives of the traineeship, its learning content, duration, roles and responsibilities of all parties involved, the supervision and quality mechanisms; and the trainee’s terms and conditions, including wage and social security coverage.

• Italy: Tuscany Region): Charter on Quality Traineeships (http://www.giovanisi.it/).

IX. Despite weaknesses, traineeships are proved to generally ensure a smooth

transition from the school to the labour market

Table 6 Effectiveness of traineeship programmes Country Effectiveness of traineeship programmes

Cyprus • Scheme for the Job Placement and Training of Tertiary Education Graduates: 1.533 placements realised between 2009 and 2012 and 119 in the first three months of 2013. 90% of participants got a job 6 months after the programme end and 76.5% of participants were employed in the enterprise that trained them.

• Emergency Scheme for the Support of Employment through Individualised Training in

Enterprises: 1.611 placements financed between 2009 and 2012; 80.2% of participants were in employment 6 months after completion of the programme.

• Practical Accelerated Initial Training programmes (work experience through a company-

based traineeship): 392 placements in 2011 and 466 in 2010; 62% of the participants got a job at the end of the traineeship

• Secondary Technical and Vocational Education (STVE) – Practical Pathway: 19.040 placements

• Practical Training of Students and School Pupils (Higher Hotel Institute/HHIC): 330 got into employment in 2011 (142 HHIC students and 188 school pupils from the Hotel Section of Technical Schools); 243 in 2010

• Work experience placements for graduates – Graduate traineeships (Plan for Graduate

Company Recruitment): 600 new graduates got into employment in 2011

• Short-term student placements in companies: 400 students into employment at the end of the traineeship (expected result)

France • 28% of trainees who undertake a traineeship integrated within an educational programme and including payment found a job in the company where they undertook the traineeships;

• 20% of those undertaking a traineeships of average length and low payment got a job; • 18% of those undertaking a voluntary traineeship got a job within their host company; • 17% of those who completed unpaid and short term traineeships got a job in the host

company Germany • 20% of all graduates have completed an internship.

• more than 4.800 students undertook transnational traineeships that included placement and funding through the Erasmus programme (academic year 2009/2010); and 14.817 youth took place to Leonardo da Vinci programme in 2011;

• 50% of trainees get into a regular job within the first 12 months after graduation; 15% get a job immediately, while only 4% continue to undertake traineeships for more than 12 months.

Italy • Curricular traineeships within university: 62.4% of graduates who have completed an internship (curricular) are employed, while among those who do did not take one only 45.9% are employed.

• Traineeships within Initial Vocation Training (FPI): 70% of the students from training agencies and 50% of students from schools are employed; after two years the percentages are 85% and 78% respectively.

• Vocational and orientation non-curricular traineeships: 32.600 (10.6%) of the total trainees in 2011 (307.000) were hired by the companies where they undertook the traineeship.

• FIXO: 11.6% of the graduates undertaking a traineeship within this programme where employed after its end; 1.900 labour market entry pathways for young university graduates and PhD graduates.

Slovenia low level of traineeships offered by firms puts Slovenia in a weak position in terms of workplace-level and experience-based competence development

X. Success factors

The main success factors of traineeships identified by European reports are:

• Structured organisational and quality assurance procedures to build links with employers motivated to provide high quality traineeships;

• Cooperation with employers and stakeholders to design relevant curricula and placements;

• Monitoring by educational institutions and employers which guarantees the quality and learning content of work experience;

• Clear delineation of roles and responsibilities for all parties involved;

• Work experience linked to one’s study subject;

• Trainees’ rights to social benefits and remuneration.

2 Towards a traineeship quality framework: comparative analysis of youth labor

market rights in selected EU member states and acceding countries: Cyprus

2.1 Introduction

Cyprus is one of the countries most affected by the economic global crisis. Youth were one of the categories most affected by the economic crisis. Unemployment among youth has sharply increased since 2008. In 2008, unemployment increased by 9%, in 2009 by 13.8% and in 2010 it reached 16.7%.

In 2011, in EU the economic loss due to the disengagement of young people from the labour market was €153 billion, corresponding to 1.2% of European GDP. Cyprus is one of the countries paying an especially high price of 2% or more of their GDP. 15

Figure 1 – Youth unemployment in EU between 2007-2011

Unemployment is higher among graduates. This is also due to the fact that Cyprus is characterised by an over-supply of graduates. Cyprus is the third country in the world in terms of tertiary education graduates relative to its population, while it has the second best most highly qualified labour force among the EU-27, with 34.5 per cent having tertiary education. However, its economy is not high-skilled and therefore cannot absorb the high number of graduates. 16

15

European Foundation for the improvement of living and working conditions, NEETs Young people not in employment, education or training: characteristics, costs and policy responses in Europe, http://www.eurofound.europa.eu/publications/htmlfiles/ef1254.htm 16 European Foundation for the improvement of living and working conditions, NEETs Young people not in employment, education or training: characteristics, costs and policy responses in Europe, http://www.eurofound.europa.eu/publications/htmlfiles/ef1254.htm

As in the other EU countries, besides the economic crisis that impacted on the employment level of youth, another barrier to the youth’s entry on the labour market regards the weak links between the skills requested by the labour market and the qualifications and knowledge offered by the education system. Moreover, youth usually lack practical skills and work experience required by the labour market. Another issue regards the long time period incurring between the end of the education and the entry of the labour market of young people.

In this context, the government adopted a series of measures aimed at increasing the employment level of youth, including the promotion of more vocational training in companies:

• The Plan for Graduate Company Recruitment is one of the measures adopted by the Cypriot government to combat youth’s increasing unemployment. The programme was initially launched in 2009 and renewed in 2011. The programme is aimed at promoting the acquisition of acquisition of practical skills in companies. Traineeships can last from six to 12 months and include a tutorship.

• The Plan for Accelerated Company-based Initial Vocational and Education Training, combining theoretical, school based education and training with practical work experience through traineeship programmes in companies. The Plan started in 2009 and will end in 2014.

• Traineeships within the formal education system (at both secondary and tertiary levels) in some specific sectors (tourism, hospitality industry and ICT) aimed at guaranteeing a smooth transition from school to work for students through the acquisition of practical work experience. These are addressed to youth aged 15-18 years old undertaking Secondary Technical and Vocational Schools. In their third and final year of study, students can take internships/placements. These include two days per week work in private companies.

The Cyprus government also uses ESF funds to promote traineeships. In fact, the priority axis 1 of the Operational Programme Employment, Human Capital and Social Cohesion 2007-2013 (Cyprus Planning Bureau, 2007) is aimed at adapting enterprises and employees to the needs of the market and creating stronger links between the labour market and tertiary education. Some of the measures financed within this priority are: projects contributing to the creation of stronger links between universities and the labour market through the set up of carerr guidance offices and Enterprises Liaison offices and through the promotion of short term placements of students within companies. Enterprises Liaison offices were set up in all the Cyprus universities with the aim to strengthen the ties between universities and businesses through the creation and implementation of a framework for students’ placements in companies. Moreover, Priority axis 2 of the OP funds training programmes aimed at improving the skills and knowledge of youth aged 18-30 years old through placements in companies.

2.2 Legislative framework

There is no legal provision of traineeships. This is mainly due to the fact that vocational training is not legally defined. Moreover, there is no specific definition of traineeships. However, different terms are used for defining traineeships: internships for short-term placements in companies as part of either university study curricula or those available in the open market; practical

experience placement for those associated with mandatory professional training.; work experience

placement traineeships linked to programmes targeted at facilitating youth labour market transitions.17

Even though there is not an overarching legal framework of traineeships, these are subject to the regulations characterising each programme.

The table below offers an overview of the main traineeship programmes and their characteristics:

Programme Description

Scheme for the Job Placement and Training of Tertiary Education Graduates

Implemented between 2009 and 2014, it is aimed at fighting graduate unemployment by supporting graduates to acquire practical company-based work experience. Traineeships within this scheme last 6 months and include training seminars for up to 20 hours.

Emergency Scheme for the Support of Employment through Individualised Training in Enterprises

Implemented between 2009 and 2013, the scheme includes financial enterprises for companies that offer practical traineeships to unemployed youth. Traineeships within this programme last 3 months.

Practical Accelerated Initial Training programmes (work experience through a company-based traineeship)

The programme, targeting young people leaving secondary education and unemployed youth, aims at providing them with combined theoretical and practical training within companies. Traineeships last up to 8 weeks.

Scheme for the improvement of the employability of the unemployed

Financed with ESF resources, the scheme is aimed at increasing the employment level of unemployed youth aged 18-30 years old through traineeships in companies. Traineeships last 8-10 weeks.

Traineeships as part of Upper Secondary Technical and Vocational Education (STVE) – Practical Pathway

The scheme is aimed at offering students aged 15-18 years old with both theoretical and practical skills aimed at easing their transition from school to work. The scheme lasts three years: the first two years are dedicated to school activities, while the last one to work experience. Trainees have to spend one day a week (20%) in a company.

Practical Training of Students and School Pupils (Higher Hotel Institute/HHIC)

Targeting both secondary and tertiary students, they are aimed at promoting the acquisition of work experience and skills in specific strategically important sectors, eg tourism and hospitality industry; ICTs; etc. For instance, students of the HHIC have to undertake 4-month traineeships as part of their studies.

Work experience placements for graduates – Graduate traineeships (Plan for Graduate Company Recruitment)

They include structured training and work experience, so that the students become familiar with the labour market requirements and adapt their knowledge and skills to employer requirements. The scheme is addressed to graduates with no work experience, or with work experience of less than 12 months and who have completed their studies in the last three years (but not more than three years).

Short-term student placements in companies

The traineeships are financed within ESF OP and aim at creating linkages between universities and business by setting up Enterprise Liaison Offices and promoting short-term student placements in companies.

17

European Commission, Employment, Social Affairs and Equal Opportunities DG (2012), Study on a comprehensive overview on traineeship arrangements in Member States

The trainee’s terms and conditions depend on the type of traineeship. For instance, the rights and conditions of trainees undertaking a traineeship within the Programmes financed within the ESF OP rights are included in the Guide of Policies and Procedures.

The employer has to:

• deploy the graduate in tasks which will allow him/her acquire necessary and relevant practical work experience in line with the learning plan produced at the beginning of the placement;

• assign a trainer/mentor to the graduate who will oversee, support and guide the graduate for the entire duration of the traineeship. The same trainer/mentor cannot oversee more than two graduate trainees at any time;

• ensure that the graduate receives the training and experience as specified in the learning plan, as well as participates in seminars/ programmes deemed necessary for the acquisition of additional/supplementary knowledge and skills;

• offer the graduate employment terms and conditions similar to those applicable to the rest of the staff, e.g. working hours;

• offer monthly compensation to the graduate, whose minimum level is €1.100/month (gross earnings) at the beginning and €1.150/month (gross earnings) after six months (for the 12-month placement);

• pay the necessary social coverage and health insurance contributions to the Cypriot Social Insurance Scheme (TKA), the Human Resource Development Authority (HRDA), and other relevant bodies;

• work closely with HRDA during the company’s participation in this programme.18

The graduate trainee has to:

• work closely with the trainer/mentor assigned to him/her in order to fulfil the aims of the learning plan;

• effectively undertake the tasks and activities allocated to him/her as part of the placement;

• take successfully part in the seminars/programmes which are included in the learning plan. As mentioned earlier, the graduate trainee is entitled to monthly compensation (€1.100/month gross at the beginning and €1.150/month gross earnings after six months) (for the 12-month placement) and to receive full social coverage and health insurance coverage. He/she should also enjoy employment terms and conditions similar to those applicable to the rest of the staff, e.g. working hours.19

18


docId%3D7754%26langId%3Den&ei=OUmwUe2hG8asPbaYgcAB&usg=AFQjCNG2f_ADjMLv6mlWCkveuGnDrZ9Ciw&bvm=bv.47534661,d.bGE 19 European Commission, Employment, Social Affairs and Equal Opportunities DG (2012), Study on a comprehensive overview on traineeship arrangements in Member States, http://www.google.it/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CDgQFjAB&url=http%3A%2F%2Fec.europa.eu%2Fsocial%2FBlobServlet%3F


Similar regulations characterise also the Plan for Accelerated Company-based Initial Vocational and Education Training programmes. Trainees receive a weekly allowance of €200 and the reimbursement of travel expenses if they have to travel for more than 40 km, or to a foreign county.

Traineeships linked to university study curricula do include any payment, while those at Technical Schools do.

2.3 Traineeship quality: assessment

Traineeships which form part of structured programmes (ESF OP) are accompanied with rigorous quality assurance procedures. For instance, the Plan for Graduate Company Recruitment includes a rigorous monitoring of the learning or training plan which both the trainee and the mentor have to fill in. The diary is monthly by the Authority’s inspectors. Furthermore, the host organisation has to submit a report which assesses the graduate’s progress with regards to his/her training performance and work experience every two months.

The Plan for Accelerated Company-based Initial Vocational and Education Training Programmes has similar quality procedures. The only difference resides in the fact that in this case the inspector comes from the trainee’s educational institution.

As to the effectiveness of traineeships, the report of the European Commission, Employment, Social Affairs and Equal Opportunities DG (2012), Study on a comprehensive overview on traineeship

arrangements in Member States describes the advantages of undertaking traineeships for the trainees as well as for the companies:

� for the trainees:

� smoother labour marker transition;

� familiarisation with the actual work environment and its norms and routines;

� the opportunity to take part in training seminars in order to acquire additional knowledge and skills;

� the chance to gain practical work experience, thus addressing one of the main employer objections for employing young people;

� the opportunity to apply their theoretical knowledge and skills in real work settings which can lead to an effective start of career and fast career progression. 20

� for the employer organizations:

� the ability to attract high calibre graduates at a reduced cost (thanks to the offered subsidies);

� more cost-effective allocation of tasks which frees up time for senior management staff to focus on more strategic aspects of the company;

20



� the more systematic and structured practical training of graduates in close co-operation with the Human Resource Development Authority (HRDA), so that they best meet the actual business requirements.21

The table below provides an overview of the effectiveness of all traineeship schemes implemented in Cyprus.

Programme Description

Scheme for the Job Placement and Training of Tertiary Education Graduates

According to the HRDA and the scheme’s formal evaluation this has been a very successful programme: 1.533 placements realised between 2009 and 2012 and 119 in the first three months of 2013. 90% of participants got a job 6 months after the programme end and 76.5% of participants were employed in the enterprise that trained them.

Emergency Scheme for the Support of Employment through Individualised Training in Enterprises

1.611 placements financed between 2009 and 2012; 80.2% of participants were in employment 6 months after completion of the programm

Practical Accelerated Initial Training programmes (work experience through a company-based traineeship)

392 placements in 2011 and 466 in 2010; 62% of the participants got a job at the end of the traineeship

Scheme for the improvement of the employability of the unemployed

2.150 in the implementation period 2010-212; no evaluation available

Traineeships as part of Upper Secondary Technical and Vocational Education (STVE) – Practical Pathway

Over the last years there has been a marked increase in the proportion of pupils opting for STVE (now 15-18%). Currently there are 19.040 placements

Practical Training of Students and School Pupils (Higher Hotel Institute/HHIC)

330 in 2011 (142 HHIC students and 188 school pupils from the Hotel Section of Technical Schools); 243 in 2010

Work experience placements for graduates – Graduate traineeships (Plan for Graduate Company Recruitment)

600 new graduates got into employment in 2011

Short-term student placements in companies

400 students into employment at the end of the traineeship (expected result)

According to the report of the European Commission, Employment, Social Affairs and Equal Opportunities DG (2012), Study on a comprehensive overview on traineeship arrangements in

Member States the success factors of traineeships are:

21 European Commission, Employment, Social Affairs and Equal Opportunities DG (2012), Study on a comprehensive overview on traineeship arrangements in Member States, http://www.google.it/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CDgQFjAB&url=http%3A%2F%2Fec.europa.eu%2Fsocial%2FBlobServlet%3F


� the combination of ‘real’ work experience with training which can effectively ensure a smooth transition into the labour market;

� the opportunity it provides to adapt the knowledge and skills of graduates to actual employer requirements;

� the provision of a well-organised and structured company placement which combines an individualised action plan and on the job training and is accompanied by the heavy involvement of a mentor/trainer assigned to the graduate trainee;

� the effective combination of different interventions (training and wage subsidies);

� the cost-sharing arrangements which ensure better employer commitment;

� the differentiation of funding levels with higher incentives to smaller enterprises which, in turn, acts as an incentive for their participation;

� the simplification of procedures and flexibility which are important to cut bureaucracy and secure employer engagement.22

2.4 Bibliography

Avramides, A., (2010). ‘The Profession of the Accountant in Cyprus’, Presentation at an Ernst & Young Conference on Labour Market Entry, 9.1.2010 http://www.imh.com.cy/assets/files/Andreas%20Avraamides%20GET%20THE%20JOB.pdf

Christofides, L. N., (2010). EEO Review: Youth Employment Measures 2010 - Cyprus, October

Cyprus Managing Authority of Structural Funds, (2011). List of ESF Beneficiaries in relation

Educational Service Commission, (2011). Annual Report 2010, March, http://91.184.206.201/LinkClick.aspx?fileticket=outUa5PijPI%3D&tabid=64&mid=419

European Commission, (2011a). Erasmus Country Statistics 2009-2010 – Cyprus http://ec.europa.eu/education/erasmus/doc/stat/0910/countries/cyprus_en.pdf

European Commission, (2011b). Detailed Statistics for Mobility, Transfer of Innovation,

Partnership Projects and Preparatory Visits 2007 – 2011 – Cyprus Country Fiche, http://ec.europa.eu/education/leonardo-da-vinci/doc/stat/cyprus_en.pdf

European Commission, (2010). National Summary Sheets on Education Systems in Europe and

Ongoing Reforms - Cyprus, Eurydice Database, October, http://eacea.ec.europa.eu/education/eurydice/documents/eurybase/national_summary_sheets/047

_CY_EN.pdf

European Foundation for the improvement of living and working conditions, NEETs Young people not in employment, education or training: characteristics, costs and policy responses in Europe, http://www.eurofound.europa.eu/publications/htmlfiles/ef1254.htm

22



European Commission, Employment, Social Affairs and Equal Opportunities DG (2012), Study on a comprehensive overview on traineeship arrangements in Member States, http://www.google.it/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CDgQFjAB&url=http%3A

%2F%2Fec.europa.eu%2Fsocial%2FBlobServlet%3FdocId%3D7754%26langId%3Den&ei=OUmwUe2hG

8asPbaYgcAB&usg=AFQjCNG2f_ADjMLv6mlWCkveuGnDrZ9Ciw&bvm=bv.47534661,d.bGE

European Foundation for the Improvement of Living and Working Conditions/Eurofound, (2011a). Helping Young Workers during the crisis: Contributions by Social Partners and Public

Authorities, April


market rights in selected EU member states and acceding countries: France

3.1 Introduction

Youth participation to the labour market in France has been getting worse in the last years. In fact, in September youth unemployment level reached 25.7%, 2.9 percentage points higher than the EU-27 average (22.8%), and 15% more than in the previous year. The activity rate of youth in France was 38,3% in 2011. According to numerous reports (Dif, 2012, OECD 2009), the increase in youth unemployment shows the structural nature of unemployment as well as the mediocrity of the French labour market for youth. France is indeed characterised by labour market segmentation and increasing in the temporary and fixed term employment contracts:

• In 2011, 55.1% of the youth aged 15-24 years old had a temporary job compared to 15.2% of those aged 15-64.

• In 2011, 22,4% of the youth aged 15-24 years old and employed had part time jobs; 45,3% of these declared that the main reason was the impossibility to find a full time job, while only 5,2% were still in education and training.

Another issue characterising youth’s participation on the labour market regards the pay gap between youth and the other worker categories: more than one job out of four are subsidised by public authorities compared to one out of 25 for the other categories of workers. Moreover, jobs occupied by youth tend to be low qualified. For instance most of the retail, hospitality and construction jobs (40%-50%) are occupied by youth under 30 years old.

Besides the economic crisis that has worsen the situation of youth on the labour market, one of the most relevant barriers to their entry on the labour market consists in the gap between the skills required on the labour market and those possessed by young people. This gap is mainly attributed to the weak coherence between the skills required by the labour market and those transmitted by the education system, due to the insufficient cooperation between enterprises and the education institutions, and to the changing structure of the economy and labour market needs.

Some of the main youth groups that face major difficulties on the labour market are:

• Early school leavers. In 2011 early school leavers reach 12% in 2011 compared to 9,5% the EU average.

• Youth with migrant/ethnic minority background, residents in suburban neighbourhoods (banlieues) and lack of qualifications.

According to available data, in 2009, the average time between a young person’s leaving formal education and starting his/her first job was 5.8 months. However, this duration depends on the type of education the person has: 9,8 months for those with lower secondary education; 6, 6 for those with upper secondary and post-secondary non-tertiary education; 4.6 for those with first and second stage of tertiary education. Differences in duration between those with high

qualifications and those with lower ones show that the unemployment rate among 15-29 year olds without qualifications is almost four times higher than for those with higher level education.

Considering the increasing youth unemployment level and of those facing difficulties to pass from a fixed term/precarious job to a stable long term contract, several measures have been adopted to ensure the transition from school to the labour market. Most of the measures include traineeships, as it will be detailed in the next section.

However, here we recall the major French programmes sustaining the employment of youth:

a) Plan d’Urgence pour l’Emploi des Jeunes (Emergency Plan for Youth Employment) adopted in 2009 in response to the economic crisis and the dramatic rise in youth unemployment. It includes a series of measures aimed at: facilitating the entry on the labour market youth through apprenticeship and traineeship programmes; providing subsidised employment contracts and of financial incentives to employers so as they continue internships/stages into permanent employment and supporting for the improvement of education deficits among youth. The Plan also recognised the widespread use of other forms of traineeships, notably those associated with educational programmes and/or undertaken in the open market.

b) Plan Espoir Banlieues (Hope for the Suburbs Plan) introduced in 2008. It includes measures regarding employment, education, training, housing, transport and childcare measures and is addressed to disadvantaged youth living in suburbs. In particular it includes measures aimed at: supporting unemployed young people to acquire qualifications and get access to stable employment through personalised accompaniment (Contrat d’Autonomie); sustaining company start-ups (through zero-interest loans) and encouraging major corporations employ young people from disadvantaged neighbourhoods by offering them employment, internship and job-training contracts. However, due to its relatively high cost, this scheme was interrupted in 2011.

c) Acting for Youth Strategy adopted in 2009 and aimed at reinforcing the employment measures for disadvantaged youth included in the Plan d’Urgence pour l’Emploi des Jeunes. It included measures aimed at improving career advice and guidance at school, preventing 17-18 year olds from dropping out of school, helping young people to become financially independent and promoting active citizenship.


Since 2006, the French government has adopted specific laws that regulate traineeships/stages aimed at improving the quality of traineeships in order to increase their effectiveness in guaranteeing transition from school to work. There are two relevant pieces of legislation that regulate traineeships: Code of Education (Code de l’éducation) which includes all legislation regarding IVET and Labour Code (Code du Travail) regulating traineeships and inclusion measures and contracts connected with CVT and labour market active policies and also measures financed within Lifelong Vocational Training’.

Furthermore, the existing body of legislation was strengthen in 2011 through the adoption of the Loi Cherpion aimed at strengthening existing regulations and safeguarding trainees from abuses (low pays, work not corresponding to their educational path, etc) by reinforcing their rights

through the Convention de Stage. The new law includes the following limits of the duration of traineeships to six months per academic year and seeks to ensure that traineeship is integrated into the educational path of the trainee. Moreover, it increases the involvement of Works Councils in relation to traineeships by requiring that the annual report of companies employing fewer than 300 employees should include information about the number of trainees and their terms and conditions. In particular, it is compulsory that Works Councils in such companies are kept informed on a quarterly basis about the number of trainees, their terms and conditions and assigned tasks.23

Accordingly, all traineeships are based on a compulsory written agreement (Convention de Stage) signed between the trainee (stagiaire), the sending organisation (education institution) and the host employer. The agreement includes the aims and objectives of the traineeship, its learning content, duration, roles and responsibilities of all parties involved, the supervision and quality mechanisms; and the trainee’s terms and conditions, including wage and social security coverage.

The rights of trainees depend extensively to the type of traineeship taken: under IVET or VET programme or under active employment measures.

In VET mandatory and non mandatory traineeships have a variable from few days/weeks to six months. However, some specific labour fields such as medicine, law, architecture, include mandatory professional traineeships of a longer duration.

According to the French legislation, a monetary compensation is mandatory if the traineeship lasts more than two calendar months within the same academic year. The trainee’s monthly is set at minimum 12.5 % of the hourly social security ceiling. If the trainee’s remuneration is equal to this ceiling, both the employer and the trainee are exempted from the payment of their social security contributions. These contributions are paid by both parties if the trainee’s remuneration exceeds this ceiling. Moreover, the sending institution is responsible for the sickness and accident insurance coverage of the trainee (‘MP/AT’) if the remuneration is equal to this ceiling. If the remuneration exceed this ceiling, it is paid by the employer.

The Loi Cherpion strengthens the rights of trainees through the following provisions:

• the trainee cannot perform tasks corresponding to those in a regular job assignment within the enterprise;

• the training period within the same organisation is normally limited to 6 months;

• companies should wait for a period corresponding to 1/3 of the length of the previous traineeship before they can take on a new trainee in the same role as that of the last one

• the host organization has to keep a ‘training register’ for the trainees separate from that concerning its regular staff

• if a trainee is recruited within the three months following the completion of the traineeship, the probation period is reduced accordingly by taking into account the duration of the already completed traineeship within the organisation

23


• although this reduction is limited to 50% of the length of the probation period, the traineeship duration is taken into account as a proper working experience including trainee’s rights to social security, retirement benefits and unemployment insurance

• the trainees have the right to benefit from social and cultural activities organised by the company’s Works Committee under the same conditions as those applied to regular staff.24

In alternance-based traineeships the traineeship is based on a specific employment contract and includes automatic access to social security coverage, such as pensions and unemployment insurance. The trainee’s payment dependents on his/her level of qualification and age. Traineeships implemented within Contrats de Professionnalisation foresee a payment ranging from 55% to 100% of the minimum guaranteed wage and even beyond in certain cases.

In these types of traineeships, their overall duration depends on whether these are connected with apprenticeships or Contrats de Professionnalisation: 60% to 75% of the traineeship duration has to be spent in the enterprise (apprenticeships); 75% to 85% of the whole duration of the concerned contract has to be spent in the enterprise in the case of Contrats de Professionnalisation.

In the case of other inclusion traineeships, the rights and conditions of the traineeship are regulated based on the programme specificities. However, if the traineeship is based on a fixed- term employment contract, the trainee is entitled to a salary and all the benefits connected with the status of an employee. If the traineeship is based only on guidance and accompaniment, the trainee might receive compensation or grant from the Regional Council or from the job centre.

Going into details on the contents of each traineeship, the most relevant are:

1. traineeships and inclusion measures in VET and IVET, made of different types of traineeships25:

a) Traineeships related to both secondary and tertiary education

• alternance-based traineeships which are specific types of traineeships based on alternating periods of work and training within an enterprise and a VET provider. Two types of such traineeships are foreseen by the French legislation:

� Apprentices, which concerns young people aged 16-26 who wish to continue their initial vocational education and training with the aim of obtaining a vocational title or qualification. Since 2006, they also include junior apprenticeship’. Accordingly, youngsters aged 14 or over pupils can leave the compulsory general education system in order to learn a vocational profession. At the age of 16 years old, the beneficiary of this measure can stop the training as a ‘junior apprentice’ and continue his/her educational path.

� Contrats de Professionnalisation introduced within the Plan d’Urgence pour l’Emploi des Jeunes (Emergency Plan for Youth Employment). They are part of the

24

European Commission, Employment, Social Affairs and Equal Opportunities DG (2012), Study on a comprehensive overview on traineeship arrangements in Member States 25


continuing vocational training and are addressed to young people aged between 15-26 and/or jobseekers over 26. Contrats de Professionnalisation foresee that each company employing a person aged up to 26 may receive 1000 euro for at maximum 24 months (the maximum employment duration). In this period, the trainee has to work in order to gain a recognised recognised vocational qualification.

• mandatory and non-mandatory training and traineeships associated with both secondary

and tertiary education as well as international cooperation and mobility programmes

Mandatory and non mandatory traineeships within IVET are relevant for acquiring vocational and technical qualifications in upper secondary and higher education at all levels. Since the 2006 they are subject to the Convention de Stage (see above for details). Since 2010, traineeships within IVET are mandatory and have to be integrated in the educational curricula of the trainee.

The non-mandatory traineeships are optional and trainees can take them on voluntary basis and include optional/facultative traineeships integrated as options within certain VET curricula/programmes and facultative traineeships not integrated within the targeted qualification curricula/programmes.

Traineeships within international mobility programmes refer mainly to Erasmus and Leonardo da Vinci. Legislation regulating such traineeships is the same.

b) traineeships enabling disadvantaged and less qualified young people to acquire basic skills

and competences for their inclusion on the labour market

• The Training Accompaniment Contract (CAF - Contrat d’Accompagnement Formation) is foreseen by the Emergency Plan for Youth Employment adopted in 2009. CAF is aimed at enabling young people aged 16-25 at risk of social exclusion to have access to employment, raise their level of qualifications and/or adapt their skills to current labour market needs, leading ultimately to accredited qualifications and/or sustainable employment. It is implemented by French job centres (Pôle Emploi).

• The Second Chance School provides vocational training and education to young people aged between 16 and 25 without professional qualifications or diplomas. At the end of these programmes, youth receive a certificate with the attained level of competences in a way.

2. Traineeships provided within active labour market policies26

They are aimed at providing accompaniment and support measures to mostly disadavantaged youth categories and include the following main traineeship programmes:

• Unique Inclusion Contract (Contrat Unique d’Insertion/CUI) introduced in 2008 and revised in 2010. Accordingly, the CUI consists in the Contrat Initiative-Emploi/CUI-CIE for the private sector (for profit) and the Contrat d’Accompagnement dans l’Emploi/CUI-CAE

26


for non-profit sector and aims to facilitate the labour market integration of unemployed young and adult people with high difficulties in getting on the labour market.

• The Autonomy Contract (Contrat d’Autonomie) introduced in 2008 and implemented within the Plan Hope for Suburbs (Plan Espoir Banlieue). It aims at offering personalised accompaniment and support to unemployed young people so as to allow them to acquire qualifications through training and/or access to sustainable employment. The contract lasts maximum 18 months (of which 6 months are for the required follow-up and accompaniment at work). During the traineeship, the trainee is paid 300 euro per month and has access to other benefits such mobility, training, etc. However, due to its high costs, this scheme was interrupted in 2011.

• The Integration Contract in Social Life (CIVIS - Contrat d’Insertion dans la Vie Sociale) introduced in 2005 within the Social Cohesion Plan. It foresees measures of assistance and personalised support to young people with difficulties in entering the labour market. It targets young people aged 16-25 either with a qualification level equivalent at most to ISCED4, or those who have not completed their lower secondary education, or registered as unemployed for more than 12 months over the last 18 months. The accompaniment measures go beyond the occupation of the person participating to this programme. In fact, personalised assistance lasts for a year after the young person secures employment.


In 2012, 1.6 million of French young people undertook a stage compared to 600,000 in 2006 (CESE, 2012).

Reports on traineeships in French show that the level of placements undertaken by youth as well as their effectiveness depends on the type of traineeship.

Traineeships are more likely to be integrated into the study curriculum of the Grande Écoles and Instituts Universitaires de Technologie and lesser in that of universities. According to a 2012 survey, 83% of students in Grande Écoles and 81% of students in IUTs undertook a traineeship, compared to only and 59% in the case of university students.

Moreover, their effectiveness in guaranteeing a smooth and quick transition from school to work depends on the type of traineeship. The most effective ones are those integrated within an educational programme: 28% of trainees within such traineeships were employed in the company where they completed their traineeship.

Furthermore, the French government offers a €3,000 bonus to employers that convert traineeship into employment in order to promote the turning of traineeships into stable employment. This measure allowed converting 7.245 traineeships into employment between 2009 and 2010. It has to be underlined that most of the stages converted into employment (40%) referred to long term traineeships (six months or over).

According to evaluation reports on traineeships, there are five types of traineeships:

• traineeships with a strong learning specificity, integrated into educational programmes and including payment;

• short term traineeships without payment;

• traineeships of average length and reduced payment;

• long term traineeships without payment duration;

• optional/voluntary traineeships

According to the formal evaluations of traineeships carried out in 2010, the following results were registered27:

• 28% of trainees who undertake a traineeship integrated within an educational programme and including payment found a job in the company where they undertook the traineeships;

• 20% of those undertaking a traineeships of average length and low payment got a job;

• 18% of those undertaking a voluntary traineeship got a job within their host company;

• 17% of those who completed unpaid and short term traineeships got a job in the host company.

Going into details on the effectiveness of traineeships, some of the major results obtained by the programmes described above are:

• The Autonomy Contract: 36.000 Contrats d’Autonomie were signed in 2010; the employment rate achieved in the implementation period was over 42%;

• Training Accompaniment Contract: 37.000 young people under 26 years old beneficiated of this type of contract in 2010;

• Unique Inclusion Contract: 74% of the beneficiaries (of CUI- CIE in the profit sector) and 31% of those beneficiating from CUI-CAE in the non profit sector found a job after six months. 60% of those beneficiating from CUI-CIE and 32% of those beneficiating from CUI-CAE found stable employment;

• Second Chance Schools: 9.800 places were opened within about 25 E2C at the end of 2010, representing 82% of the targeted 12,000 placements. In 2009, the rate of completion was positive, in that 59% of the beneficiaries completing this particular accompaniment measure found a job or traineeship;

• Contrats de Professionnalisation: 170.000 contracts were signed between 2009 and 2011. Moreover, funds provided by the Plan were used to finance 50.000 training placements for disadvantaged young people and to subsidise 50.000 jobs in the private sector and 30.000

27 Giret, J.-F. and Issehnane, S. (2010), L’Effet de la Qualité des Stages sur l’Insertion Professionnelle - Le Cas des Diplômés de l’Enseignement Supérieur

additional contracts in the public sector. Furthermore, evaluation reports of this scheme

underline that the rate of access to employment through these contracts is higher and more immediate after the completion of the traineeship than in the case of other traineeships. 28

According to the report Study on a comprehensive overview on traineeship arrangements in

Member States (French case study), traineeships have a positive impact on the labour market transition of young people, through:

• the reduction of the graduate’s length of labour market transition period: 80 to 90% of higher education graduates holding technical/ vocational qualifications secure their first job within the first six to twelve months on average after their graduation;

• the improved quality and terms and conditions of the graduates’ first placement in employment.

Overall we can conclude that in France traineeships are a valuable tool for guaranteeing a smoother transition from education to the labour market and allow trainees to:

• apply their theoretical knowledge in real work contexts;

• achieve technical skills which match actual employers’ needs and acquire organisational and communication skills valuable on the labour market;

• get in touch with potential employer and have the opportunity to show their skills and knowledge;

• acquire knowledge on the labour market functioning and on their rights and duties on the labour market.

3.4 Bibliography

Dif, M. (2012), National Report on Traineeships – France, in Hadjivassiliou, P. K., Rickard, C., Pesce, F., Samek, M., et al., Study on a Comprehensive Overview on Traineeship Arrangements in Member States, Final Synthesis Report prepared for the European Commission, 31.5.2012, http://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=6717&type=2&furtherPubs=no


Eurostat (2011) Education statistics: Thematic indicators. Available at: http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database

Le Deist F., Winterton J. (2011), Synthesis Report On Comparative Analysis of the Development of Apprenticeship in Germany, France, The Netherlands and the UK

28 European Commission, Employment, Social Affairs and Equal Opportunities DG (2012), Study on a comprehensive overview on traineeship arrangements in Member States

Flash Eurobarometer (2011) 319b: Education and Training, Mobility, Employment And Entrepreneurship. Youth On The Move. Available online: fl_319b_sum_en

Euroguidance (2010), Les Stages en Europe, décembre, http://www.europe-education-formation.fr/docs/guide-stage-europe.pdf

European Commission (2012a), Towards a Quality Framework on Traineeships - Second-Stage Consultation of the Social Partners at European Level under Article 154 TFEU, COM(2012) 728 final, Brussels, 5.12.2012

Scarpetta, S., Sonnet, A., Livanos, I., Núñez, I., Riddell, W. C., Song, X., and Maselli, I. (2012), ‘Challenges Facing European Labour Markets: Is a Skill Upgrade the Appropriate Instrument?’, Intereconomics: Review of European Economic Policy, Springer, Vol. 47, No. 1, pp. 4-30, January, http://www.oecd.org/els/employmentpoliciesanddata/49567835.pdf


market rights in selected EU member states and acceding countries: Germany

4.1 Introduction

Different from other European countries, in Germany youth employment level is higher than the EU average and contrary from other European countries it increased between 2007 and 2011 (see fig.1). In fact, youth (aged 16-24 years old) unemployment dropped from 11.9% in 2007 to 8.6% in 2011. Moreover, in 2011 the NEET level reached 10.2%, below the 2000 level.

Figure 1 – Youth unemployment in EU between 2007 and 2011

Even though German youth have less problems in finding a job, numerous studies show that traineeship favour their possibilities to get into employment and ensure a smooth transition between school and professional training and between graduation from university and employment or training.


In Germany there is not a specific definition of traineeship. However, according to the court case law a trainee is a person that is “employed to gain knowledge, practice and professional experience”. Therefore, the trainee status is linked to a learning purpose. Moreover, according to

the Federal Ministry of Labour and Social Affairs, traineeship is that type of employment which is directly related to an increase in the skills of the trainee. If the qualification aspect lacks, an employment cannot be defined as traineeship even though contractually identified with the traineeship label. Where this occurs, traineeship regulations should not be applied and employment should be subject to the labour market legislation.

In Germany, there are different types of traineeships:

• Short-term traineeships: usually are integral part of school education and most often they are mandatory. Short –term traineeships are addressed to youth aged 14-18 years old.

• Traineeships as mandatory part of a school-based vocational training: these types of traineeships are a substitute for the practical part of a dual VET within a certain company, which is characteristic for the German vocational system.

• Voluntary traineeships as an opportunity to gain a position in the dual VET system: these traineeships represent an opportunity for youth that have finished their school career and are looking for a dual VET position. It is common among school graduates with a relatively low level of formal education, but good practical skills.

• Mandatory or voluntary traineeships of students at universities and polytechnics: They can be either mandatory or voluntary, depending on the study regulations. Usually all students in Germany pass one or more traineeship, even though it is not compulsory.

• Voluntary traineeships of graduates of vocational trainings, polytechnics or universities:

Voluntary traineeships are aimed at allowing trainees to gain practical skills and experience and to get in touch with potential employers.

• “Referendariat”: it refers to compulsory traineeships for law school graduates who want to practice. Moreover, teachers and graduates of technical universities like architecture, engineering or environmental science that want to work as civil servant have to undertake a Referendariat.

• Praktisches Jahr is mandatory for all medical students;

• “Volontariat”: is a type of traineeship for university graduates in the fields of media, publishing and advertising. Within one or two years, depending on experience, the trainee gains the skills that are required for professional practice in these sectors.

• “Trainee-Programm”: aims at preparing university graduates for expert and executive positions and is quite similar to regular employment, even though remuneration is lower. The trainee has a limited contract with an employer for one to two years. During this period, trainees work in different sections of the company.

• Transnational Traineeships are identical to the other traineeships (i.e. “Referendariat”). However, the EU programmes (Erasmus, Leonardo da Vinci) that offer traineeships in international organisations are subject to specific regulation.29

29


There is not a unique legislation that governs the traineeship programmes described above. They are subject to different types of legislation. As traineeships are regulated by different types of legislation, there is no central institution that oversees the implementation, the quality and the results of traineeships.

Legislation is different for mandatory and voluntary traineeships. Moreover, some professions are regulated by sectoral agreements.

However, all types of traineeships are subject to the Law on working hours and the Law for the protection of adolescents at work, which states that teenagers less than 15 years are not allowed to exceed seven working hours per day and 35 hours per week. For those from 15 to 18 years the limit is the same at schooldays, which can be extended to 40 hours weekly during holidays. Furthermore, night shifts are prohibited.

Mandatory traineeships (both vocational or academic) are subject to school regulations (Schulordnungen) and study and examination regulations of colleges and universities (and Studien- und Prüfungsordnungen). According to these laws, contracts between the employer and the trainee can be either oral or written. Moreover, remuneration is not mandatory and holidays are not foreseen. Furthermore, the duration of traineeships has to be precisely defined as well as the contents and the qualifications that the trainee has to acquire. In fact, the employer has to issue detailed certificates on the activities of the trainees and the experience and skills acquired.

Voluntary traineeships are subject to the same legislation, except for the remuneration foreseen. If in the other cases, remuneration is voluntary, in this case it is mandatory and trainees have the same rights as regular employees (paid holidays and paid illness).

Another type of legislation applied to traineeships regard the court case law. Two of the cases refer to the remuneration issue. The courts argue, that the Law on Vocational Training (BBiG) also addresses trainees, as § 26 BBiG rules that §§ 10 to 23 and 25 BBiG applies to all people that are “employed to gain knowledge, practice and professional experience”. Accordingly, also (voluntary) trainees can refer to § 17 BBiG and claim appropriate payment. The Arbeitsgericht Berlin (Labour Court) also tries to answer the question of what is “appropriate” remuneration. The judges sustain that, although it is not clearly defined what a “noticeable disproportion” between work and compensation is, a salary which is less than one third of the wage determinate by collective labour agreements is immoral and, as a result, illegal. Consequently, the “appropriate” salary of trainees has to be oriented to at least one third of the collective labour agreements´ wages.30

Some types of traineeships are subject to specific sectoral agreements. This is the case of medical, law, architects and engineers graduates and teachers that want to work as civil servants. Medical students are required to pass two practical sections of practical training, Formulator and Praktisches Jahr (Practical Year). These are subject to Approbationsordnung (Act on licensure of medics). Famulatur is usually unpaid, while the Practical Year is often remunerated with a few hundred Euros.

Law students have to undertake a practical training of two years after a first graduation, divided into stages of three months that have to be completed at different places. The legal status of

30


trainees differs across the German states. In some of them, it is organized as an apprenticeship, in others the status is “Beamter auf Probe” (civil servant in probation). Both are paid with 1000 € gross monthly. The Referendariat of teachers as well as architects and engineers in public service is subject to similar regulations.

There are also traineeships that are subject to employment agreements on firm level and that are negotiated between the employer and the work council. This is for instance the case of traineeships in newspapers and magazines. Journalists have to undertake a “Voluntariat” traineeship, which last up to two years. In this case, traineeships are well regulated in terms of length, contents and payment.

As mentioned above, all traineeships are subject to different regulations regarding the trainees’ rights. According to the report “Study on a comprehensive overview on traineeship arrangements in Member States (Germany case study)”, The Federal Ministry of Labour and Social Affairs (BMAS) sustains that the appropriateness of the remuneration depends on the quality of the traineeship. The higher qualification of the trainee and the benefit for the company the higher the remuneration has to be. If a trainee has no relevant qualification and is the main beneficiary in the trainee-employer-relationship, an appropriate payment can also be quite low. Referring to BMAS, the main criterion for an appropriate remuneration is the contribution of the trainee to the work process and not the question whether the remuneration covers the trainees´ living expenses. BMAS offers a monthly payment of 300 Euros for all interns and endorses a directive that suggests all Federal Ministries and Agencies to award the same amount. This directive applies to both voluntary and mandatory traineeships.31

However, 68% of all students and university graduates traineeships do not include remuneration and 73% of mandatory traineeships, which are required to complete a course of studies, are unpaid. The proportion is lower (56%) in the case of voluntary traineeships.32

In the last years, there has been a large debate on the remuneration issue. The Social Democrats, Green Party and Die Linke introduced bills dealing with traineeships into the committee of education and research. Social Democrats sustain the introduction of a remuneration of 350 € per month. Similarly, Green Party and Die Linke suggested a threshold of 300 €. However, no legislation has been passed at the moment and the debate is going on.


As sustained by the Study on a comprehensive overview on traineeship arrangements in Member

States (Germany case study), the general perception is that traineeships have a high level of quality: 72% of the youth interviewed within a study on BMAs stated that their internships extended their professional skills to a high or intermediate degree; for 17% the traineeship experience was only little beneficial; 11% did not acquire additional skills at all; 81% experienced good mentoring. Moreover, studies undertaken on other types of traineeships reinforce the general perception of high quality of traineeships in Germany. For instance, the study of the Institute for Research on the University System shows that 64% of student trainees

31



are satisfied with the learning outcome and 61% experienced good mentoring. For 57% of the interviewees, the traineeships contributed to their professional development; 66% stated it improved their professional orientation. A study of the Federal Ministry of Education and Research on traineeships of university graduates points out that 70% of the interviewee are satisfied of their traineeships and 67% state that the level of given tasks was reasonable. 33

However, one of the weak points of traineeships regards the financial remuneration. In fact, according to the same study 61% of the trainees that received a low remuneration or no remuneration at all felt exploited.

According to the Study on a comprehensive overview on traineeship arrangements in Member

States (Germany case study), the main benefits experienced by trainees are:

• Trainees improve their practical skills and experience;

• Trainees can apply their theoretical knowledge.

• They can get in touch with the labour market and understand their rights and duties

• Trainees can get in touch with potential employees;

• Traineeships offer an opportunity for professional orientation.34

According to the study some of the main results obtained by traineeship programmes in Germany are:

• 20% of all graduates have completed an internship. The average number of internship has been 1.9;

• more than 4.800 students undertook transnational traineeships that included placement and funding through the Erasmus programme (academic year 2009/2010); and 14.817 youth took place to Leonardo da Vinci programme in 2011;

• 50% of trainees get into a regular job within the first 12 months after graduation; 15% get a job immediately and only 4% continue to undertake traineeships for more than 12 months.35

4.4 Bibliography

European Commission: different sources on amount of funding and number of participants in the Erasmus and Leonardo da Vinci programmes


Eurostat (2011) Education statistics: Thematic indicators. Available at: http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database 33





market rights in selected EU member states and acceding countries: Italy

5.1 Introduction

In Italy, young people have been the hardest hit by the economic crisis, registering sharp increases in unemployment (especially among young men) and inactivity due to discouragement (especially among young women and in Southern Italy).

Some of the main characteristics of youth’s labour market in Italy are:

• High NEET rates (Not in employment, education or training) compared to the EU 27 average: 22.7% (2011 data) compared to the 15.4% EU27 average. Two thirds of NEET women are not active due to their discouragement and care duties. Most of the NEETs are high educated youth.

• Youth (aged 15-24 years old) unemployment rates higher than the adults’ one and in continuous increase: 23.1% in 2001, 29.1% in 2011, 36.5% in 2012. Among youth, young women, low educated people and young people from Southern Italy are those mostly affected by unemployment.

• Increasing unemployment among graduates. National studies on graduates’ employment show that a year after their degree, the unemployment rate is increasing from 10.8% in 2007 to 17.7% in 2009 and 19.6% in 2010.

• The youth Italian labour market is characterized by precarious jobs. Most of the precarious workers are youth aged 15-29 years old: 30% of employees aged 15 and 29 have fixed term jobs, compared to 8% in the other age categories.

• High differences between youth living in the Central and North part of the country and youth living in Southern Italy. In these latter regions, NEET rates reach 32.5% (2011) compared to 18.5% in Northern Italy. Moreover, only 23% are employed compared to the 43% of youth in Northern Italy.

• skill mismatch between supply and demand, due to the gap between the education system and the labour market.

• over-qualification of young people on the labour market: in the 2009-2011 period, around a quarter of young graduates were employed in jobs with a very low profile. This phenomenon is even higher for women graduates: 40% of women graduates compared to 31% of male graduates.

Moreover, as the Italian education is extremely distant from the labour market, work experience is rather limited during studies and the education drop out is still very high: 18.2% in 2011 compared to the 13.5% EU average.

In this context, different programmes and legislation have been adopted to promote a stronger link between the education system and the labour market demand:

• the Italian 2020 Action Plan for Youth Employment: launched in 2010 by the Ministry of Labour and Social Policies, the Ministry of Education, Universities and Research with the aim to enhance the employability of young people through the integration of education and work experience. Six areas for priority action have been identified:

� transition from school to work through the enhancement of networking and the implementation of career services in high schools and universities ;

� enhance technical and vocational training;

� apprenticeship contracts;

� new aspects related to the labour market (such as workplace safety and pension rights) introduced in schools and universities;

� a better matching of university courses with the labour market and the lifelong learning principle and;

� the better aligning of PhD programmes with the labour market. More recently apprenticeships have been regulated under a comprehensive law36 and the so called 'Fornero Reform'37 which identified apprenticeship as the prevalent form of entry into the labour market. At the same time, the Fornero Reform envisages limits on the use of traineeships during education, such as the use of extra-curricular traineeships.

• The 2011 Consolidated Act on Apprenticeship (Testo Unico - D.Lgs. 14/9/2011, n. 167) aimed at increasing the connection between training and the labour market. Three types of apprenticeships are foreseen: training apprenticeships for diploma or professional qualification; professional apprenticeships; advanced training and research apprenticeships.

• Local Youth Plans promoted by the Department of Youth - Presidency of the Council of Ministers - in collaboration with ANCI and the Network ITER – and aimed at developing integrated policies implemented at the local level to support young peoples' access to the labour market, to financial credit, to the housing market.

• Youth Guarantee Schemes and financial support consisting in a Fund for the Study and The Provision for credit to young people. The Fund is targeted at providing the necessary guarantees to enable deserving young people (aged 19-40) to obtain financing for post-graduate specialization courses or for broader knowledge of a foreign language. Furthermore it supports youth entrepreneurship with measures facilitating access to credit and services (training, facilities etc.).

• The 2012 labour market reform aimed at balancing the use of different contractual arrangements in order to improve young people’s entry on the labour market through apprenticeship contracts and to foster their path to becoming permanent workers. The Law intends to ease the contractual stability of workers and contrasts the abuse of flexible contracts, by lowering the cost of permanent employment, through the removal of restrictions imposed by art.18 of the Workers’ Statute (1970) on the decision of firms to

36

Approved on 14 September 2011, the new law has been in force since 25 October 2011. 37 Law 92 of 28 June 2012 'Disposizioni in materia di riforma del mercato del lavoro in una prospettiva di crescita'.

dismiss employees, and by increasing the cost of temporary work by granting workers social security rights. Moreover, the reform revises the system of social shock absorber, introducing new universal schemes also available to temporary workers even if less generous than the ones for permanent employees.

• Measures on traineeships: the Circular 12/9/2011 n.24 act introduces a distinction introduced between vocational and orientation traineeship and other types of traineeships, such as: curricular traineeship within a study plan, workforce integration/reintegration traineeship and traineeship designed for people with physical, psychological or sensory disabilities. Vocational and orientation traineeships may be offered only to recent high school or university graduates within 12 months of having earned their diploma or degree, as well as to on-going students (including those working towards a bachelor’s, master’s or doctoral degree). On the other hand, the new regulations do not apply to the unemployed or the never-employed eligible for workforce integration/reintegration traineeships. Furthermore, they do not apply to the disabled or disadvantaged who are eligible for traineeships for the disadvantaged.


The Italian legislation includes different types of traineeships:

• Curricular traineeships within university (Law 196/97 and D. Lgs 142/98 emended by La 92/2012): traineeships included within a study plan at a university as part of a formal course of education, governed directly by the academic regulations of the university. University traineeships include also master’s programmes governed directly by the academic regulations of the schools.

• Transnational traineeships: The EU Leonardo da Vinci Lifelong Learning Programme, ERASMUS Programme; Internships at EU institutions and bodies, which issue calls for interns from time to time; Institutional internships at Italy’s Ministry of Foreign Affairs; Institutional internships of the Fondazione CRUI, the operating arm of the Italian University Rectors’ Conference; Institutional internships at the Italian Institute for Foreign Trade (I.C.E., formerly Italian trade Commission); Internships at international organisations (e.g. European Space Agency, UNHCHR, World Bank, IMF, UNICEF, WTO, ILO, OECD, etc.).

• Traineeships included within Higher Technical Institutes (ITS): traineeships included within Higher Technical Institutes programmes governed directly by the academic regulations of the schools.

• Traineeships within Initial Vocation Training (FPI): traineeships in vocational training programmes, incorporated into scholastic curricula and addressed to students of vocational training courses.

• Vocational and orientation non-curricular traineeships: vocational and non-curricular traineeships aimed at facilitating young people’s occupational choices and employability in the transition from school to the workforce, through training and direct experience in the workplace. They are defined and regulated by laws at regional

and national level. They may be offered only to recent high school or university graduates within 12 months after their diploma or degree.

To these traineeships, those offered within the FIXO programme has to be added. It is aimed at: facilitating the school-to-work transition; developing skills relevant to the labour market (through professional traineeships); supporting a first work experience through placements; improving access to first jobs (through guidance traineeships, apprenticeships and entrepreneurship start-ups support. The programme can be divided in three phases. In the first phase (2007 -2009), the programme focused on placements and on financing traineeships for labour market entry. These are guidance traineeships targeted at university graduates with the explicit aim of promoting their integration into the workforce. In the second phase (2009-2011), the programme continued to focus on placements and on traineeships for easing the access of youth to labour market. To this purpose, Industrial Liaison Offices were created within universities with the aim to connect the university system to the labour market. The last phase of the programme is ongoing until the end of 2013. The main characteristics of the current programme are: focus on guidance and placement services in high schools and on professional and guidance traineeships and apprenticeships for young people who hold a diploma or who have attended the last year of high school; further specialisation of the technical assistance in placement services and the ILOs targeting specific target groups (i.e. Phd graduates and/or university graduates); definition of quality standards.

Curricular traineeships are governed by the regulations of schools and universities.

In 2011, legislation on traineeships (Decree No. 138) introduced for the first time a specific distinction between vocational and orientation traineeships “expressly designed to facilitate

young people’s occupational choices and employability in the delicate transition phase from school

to the workforce through training and direct experience in the workplace” (Decree no. 138) and other types of traineeships.

Vocational and orientation (non-curricular) traineeships are defined and regulated at the national level by the following laws:

• Law No. 196 of 24 June 1997 ‘Norme in materia di promozione dell'occupazione’ (Measures regarding the promotion of employment), Article 18 (the so-called ‘Pacchetto Treu’).

• Interministerial Decree No. 142 of 25 March 1998 ‘Regolamento recante norme di attuazione dei principi e dei criteri di cui all'articolo 18 della legge 24 giugno 1997, n. 196, sui tirocini formativi e di orientamento’, regulations for implementing principles and criteria in Article 18 of Law No. 196 on vocational and orientational traineeships.

• Italian Ministry of Labour and Social Security Circular No. 92 of 15 July 1998 ‘Tirocini formativi e di orientamento’, vocational and orientational traineeships.

• Italian Ministry of Labour and Social Security Circular No. 52 of 9 July 1999 ‘Stage in azienda’, traineeships in companies.

• Interministerial Decree of 22 March 2006 ‘Svolgimento dei programmi di istruzione e formazione da effettuarsi nei Paesi d'origine dei cittadini extracomunitari', carrying out education and training programmes to be held in the countries of origin of non-EU citizens.

• Legislative Decree No. 138 of 13 August 2011 ‘Ulteriori misure urgenti per la stabilizzazione finanziaria e per lo sviluppo’, further urgent measures for financial stability and development, Article 11 (‘Livelli di tutela essenziali per l’attivazione dei tirocini’, essential levels of protection for activating traineeships), converted with modifications into Law No. 148 of 14 September 2011.

• Italian Ministry of Labour and Social Policy Circular No. 24 of 12 September 2011.

After the 50/2005 sentence of the Italian Corte Costituzionale, which established that the Italian Regions have exclusive jurisdiction over vocational and orientation traineeships, national legislation has been applicable only in the absence of regional legislation. However, only 7 regions out of 20 have regulated traineeships; 9 have incomplete legislation and the rest have no specific legislation at all.

According to the Italian legislation, traineeships may be offered to:

• Secondary school students.

• Unemployed people and people that never had a job

• Disables;

• recent high school or university graduates within 12 months of having earned their diploma or degree, while also allowing on-going students to take part (including those working towards a bachelor’s, master’s or doctoral degree).

According to the present legislation, traineeships are not considered to be employment relationship. Vocational and orientation traineeships cannot last for more than twelve months. According to the Fornero reform, traineeships cannot be free of payment and a minimum sum of 300 euro has to be offered to students undertaken one.

Ttraineeship experience involves the trainee, the host company, and the organisation that promotes the traineeship.

A traineeship agreement is signed between the promoting organisation and the host one, including a specific training plan for each trainee and a mentor who is in charge of guaranteeing that the training plan is respected and fully respected. Moreover, the host company is obliged to cover the trainees’ insurance against workplace specific accidents. The host organisation is not obliged to hire the trainee once the traineeship is finalised.

The trainee “is responsible for performing the activities specified in the training and orientation

project, obeying workplace health and safety regulations; keeping proper privacy for data,

information or knowledge of products and production processes acquired during the traineeship,

following mentors’ instructions, and referring to mentors any organisational issues of other

contingencies”(Ministry of Labour, 1998).


As in many European countries, one of the critics brought to traineeships in Italy regards quality of traineeships and their adequacy to the educational path undertaken by the trainee. In fact the report Italia 2020 states that “for a long time, traineeships have been one of the few channels –

along with on-the-job-training contracts and apprenticeships – for transitioning young people into the job market. Nevertheless, alongside good practices, there have been reports of troubling phenomena that often see vocational and orientation traineeships used as a low-wage workforce recruitment channel with no training value or even actual orientation.”

This is also due to the fact that there are no adequate mechanisms to guarantee quality of traineeships. The final evaluation made by the parties involved is not considered to be a sufficient element for ensuring quality of traineeships.

Consequently, trainees might find themselves in a position of “regular workers” doing jobs which are not directly connected to the training contents and for which the employer should have hired regular workers. In the crisis context, this phenomenon is even more relevant as many companies use the traineeship instrument to replace paid workers as trainees cost less and contract conditions (limited contract duration, no difficulty to cease it, etc) are advantageous for the companies.

However, legislation adopted in the last two years tries to prevent these risks by introducing more controls, limiting the timeframe for undertaking a traineeship and by introducing a minimum payment for trainees.

Despite the limits of traineeships, they still continue to be a useful tool for offering young students the possibility to get to know the labour market and how it functions and to acquire practical experience and better skills. Moreover, traineeships allow them to test their aptitudes in a specific field and to improve their career choice after graduation.

The table below38 reports a brief overview of the effectiveness of the traineeships mentioned about:

Traineeship type Effectiveness

Curricular traineeships within

university

• A year after graduation, 62.4% of graduates who have completed an internship (curricular) are employed, while among those who do did not take one only 45.9% are employed.

Transnational traineeships: The EU

Leonardo da Vinci Lifelong Learning

Programme

• Strong involvement of PMI in 2013 - from 10.17% to 12% compared to 2012

• no data available on employment level.

Transnational traineeships: the

ERASMUS Programme

there is no data on the employment level obtained after traineeship

Traineeships included within Higher

Technical Institutes (ITS) • no evaluation data is available yet.

• some of the positive aspects characterising this scheme are: strong link with territorial needs; the legal nature of provider entities ensure the integration at all levels with a variety of local actors; the majority of teaching staff coming from the business world increases guidance and support to the labour market integration.

Traineeships within Initial Vocation • Monitoring data shows that after one year of completing the

38

European Commission, Employment, Social Affairs and Equal Opportunities DG (2012), Study on a comprehensive overview on traineeship arrangements in Member States, ec.europa.eu/social/BlobServlet?docId=7754&langId=en

Training (FPI) FPI, 70% of the students from training agencies and 50% of students from schools are employed; after two years the percentages are 85% and 78% respectively.

Vocational and orientation non-

curricular traineeships • available data show an increase in the number of students

undertaking a orientation traineeship over the year.

• 32.600 (10.6%) of the total trainees in 2011 (307.000) were hired by the companies where they undertook the traineeship.

As recalled in the introduction, FIXO is one of the programmes that managed to ensure successful transition from school to work also through the traineeships promoted. Some of the results of this programme are:

• 13.863 young university graduates have participated in a TIL.

• 11.6% of the graduates undertaking a traineeship within this programme where employed after its end;

• 1.165 young university graduates participated to specific training courses to develop skills for technological innovation and research products in enterprises and 211 where employed after the course end;

• 700 young graduates concluded a traineeship or on the job training;

• Creation of an additional 30.000 extra-curricular traineeships and 1.900 labour market entry pathways for young university graduates and PhD graduates.

• 70 universities have developed placement and liaison offices.

The Study on a comprehensive overview on traineeship arrangements in Member States (Italian country report) includes the following recommendations for the improvement in the effectiveness of traineeships:

• “Development of a regional database to monitor traineeships and allow co-ordination and control both during and after traineeships, initiated by local promoters.

• Limiting the maximum length of traineeships (in accordance with the recent national legislation on minimum oversight levels for the implementation of traineeships).

• Prohibition against companies who have laid off workers (cassa integrazione), have placed workers on the re-employment lists (mobilità), or have recently fired workers.

• Provision of tax benefits and lower social security payments for companies that hire trainees at the end of the traineeship.

• Substantive and structural improvements to the training plan, instead of merely ensuring that it meets formal requirements.

• Improvements in the effectiveness of the mentor, who must not merely be a formal presence as stipulated in the master agreement, but a figure providing concrete support to the trainee (appropriate training and compensation might be provided for the mentor).

• Increased responsibility for promoters, who must exercise real control over the quality and the conformity of the training experience they promote and not limit themselves to acting as an automatic mechanism for balancing supply and demand.

• Promotion of appropriate attitudes in young people, who must be strongly motivated and actively choose the workplace where they will invest their time as trainees if they are to be successful.

• Increase in the share of curricular traineeships (as part of scholastic studies at a young age) and reduction of traineeships initiated after having completed one’s schooling or (in any case) at a later age.” 39

5.4 Bibliography




Banca d’Italia, L’economia delle regioni italiane. Dinamiche recenti e aspetti strutturali, Economie regionali n. 24, Novembre 2012

Isfol, 2011, La ricerca di lavoro: i canali di intermediazione e i Centri per l'impiego; http://archivio.isfol.it/DocEditor/test/File/2011/Editoria%20digitale/Studi/Studi_2%2011_MandroneRadicchia.pdf

Isfol Report 2011, Training and employment outcomes of the three-year paths Isfol Report 2012

Isfol Report 2013

Isfol Report 2012, Skills for jobs and growth [Le competenze per l’occupazione e la crescita

Isfol, Rapporto annuale di monitoraggio 2012, Progetti di Trasferimento dell’Innovazione Mobilità Transnazionale Partenariati Multilaterali

Ministero del lavoro e delle politiche sociali e Ministero dell’Istruzione, dell’università e della ricerca, ITALIA 2020. Piano di azione per l’occupabilità dei giovani attraverso l’integrazione tra

apprendimento e lavoro, 16 giugno 2010

Unioncamere’s Excelsior Training and Employment Information, The Excelsior Information System. Training in the workplace and activation of stage (Sistema informativo excelsior. Formazione sul luogo di lavoro e attivazione di stage, i risultati dell’indagine 2012);

39


http://www.cliclavoro.gov.it/Moduli%20e%20Documenti/excelsior_2012_formazione_tirocini.pdf


market rights in selected EU member states and acceding countries: Slovenia

6.1 Introduction

In the last years, the Slovenian labour market has been facing numerous difficulties due to the international economic crisis.

Even though in the past, youth employment was not an issue in Slovenia, once with the economic crisis the labour market for youth has been characterized by an increased flexibilisation of jobs for youth, and in particular by an increase in short term contracts. As it can be seen in the figure below youth employment level decreased by almost 10% between 2007 and 2011. Furthermore, Slovenia is one of the countries with the highest level of people working in family businesses.

Figure 1 – Youth unemployment level between 2007 and 2011

Moreover, besides the recent worsening in the youth employment level, a research of the National Council of Slovenia (2010) underlined that:

• there is a gap between the education system and the labour market as to the qualifications required on the labour market;

• career planning is almost missing in the education system;

• there is a contradictory implementation of the Bologna reforms in higher education;

• there is an increase in the number of students that abandon school and professional training.

In order to improve the employment level of young people, the Slovenian government adopted a series of measures such as:

• counseling and job search, including actions such as job search assistance and the provision of information on the labour market;

• promoting employment and self-employment, through financial measures sustaining entrepreneurship among young people;

• measures aimed at enhancing social inclusion;

• education and training programmes, which include both institutional training programmes aimed at supporting participants in obtaining specific vocational qualifications and training programmes aimed at job seekers and in particular at young graduates.

The main traineeships programmes implemented in Slovenia are:

1. “Graduate – activate yourself and get the jobs” is aimed at matching the requests of the labour market with those of the job demand. The Slovenian Student Organisation acts as a job agency putting together the employees’ request with those of the new graduated students. The employers that take part to the programme have to provide a six months traineeship with a mentor. The employers receive a 2000 euro subsidy for financing the trainee’s wage during the training period, but they have to cover the costs of the mentor and pay at least 3 euro per hour to the trainee.

2. After studies into employment programme consists in job fairs aimed at young graduates’ entry on the labour market;

3. Project learning for young adults is aimed at unemployed school drop-outs under the age of 26 in order to determine them to return to school or get a job. The purpose of the programme is to support youth without qualifications, not in education, training or employment to return to school or to acquire specific skills that could ease their entry on the labour market. Young people participating to the programme are offered mentors that have to help them to solve the problems that got them out of the school system. Moreover, mentors also support them in the job search process through the provision of customized guidance and counseling services. The participation in the programme generally lasts around one year.

4. Employ me provides subsidies for the employment of disadvantaged groups of unemployed people for one year. The programme is aimed at developing the qualifications, knowledge and social security of unemployed people.


The Slovenian vocational training system does not include traineeship, as work practice is carried out in the school system.

In Slovenia, traineeship refers to: “a person who starts to carry out work appropriate to the type and level of professional qualification for the first time, concludes an employment contract as a trainee in order to gain ability to carry out his job independently”.

The main legal source that regulates traineeship is the Employment Relationship Act (articles 120-124) adopted in 2007 in order to regulate employment and contractual issues. Once with the introduction of ERA, traineeships are no longer mandatory except for in three specific sectors: public administration, law and healthcare.

According to the ERA specifications, the employers have to conclude a contract with the trainees which cannot be longer than one year. The contract can be extended by six months if the trainee takes part-time work or can be shortened at maximum half of the normal period. The termination of the traineeship contracts is allowed only in extraordinary cases. Trainees have to pass a final exam at the conclusion of their traineeship period. ERA does not limit traineeship to a specific level of the education system, but it goes from ISCED 3 to ISCED 5. The wage awarded to trainees cannot be lower than the national minimum wage and they have the right to earn 70% of the basic salary at the workplace.

As to the contents of traineeships, the employers have to provide the trainees with programme-based training for independent work.

Even though there is no precise information on the type of funds financing traineeships, some studies emphasize that most of the funds dedicated to practical training programmes within the educational system come from public resources.

At the entrance into force of ERA, it was expected that specific traineeship regulations would be produced for each economic sector within the sectoral collective agreements. Even though there are 39 collective agreements, they do not include specific provisions for the regulation of traineeships. In fact traineeships continue to be regulated mostly at company level.

An alternative to traineeships was introduced once with the adoption of the Mini-Jobs Act. However, mini –jobs are not specifically addressed to students or pupils, but the target is much wider: besides students and pupils, it also include pensioners, unemployed and other inactive people. Mini-jobs consisted in occasional and determined jobs that could not exceed 14 hours a week. Students protested against the adoption of this act and after enormous pressure obtained the right to organize a referendum for the rejection of the act. In 2011, after the referendum the act was rejected.


The characteristics of traineeships in Slovenia are: a) an educational purpose; b) a practical element of learning; c) short term duration.

Different from other European countries, in Slovenia traineeships are regulated by law. However, the legal framework is rather general and limits itself to defining the general employment conditions and traineeship duration. Sectoral contracts should have regulated traineeships, but the fact that the 2007 Act stated it was no longer mandatory in almost all sectors impacted upon its regulation. In fact, none of the sectoral contracts foresee specific regulations for the contents or quality of traineeships in each labour sector.

One of the weaknesses of traineeships in Slovenia regards quality assurance and quality assessment. Quality assurance depends on whether the traineeship is part of the educational or vocational training system or not. While until 2004 there was a full evaluation system for

traineeships included in the university path, in 2006 the Education Act abolished it. Moreover, differences exist also between traineeships foreseen within publicly accredited training courses and private non-formal training courses. While in the case of public accredited courses, quality standards are foreseen by legislative guidelines and quality assessment is based on self-evaluations, in the case of non formal private training, quality assessment occurs only if the training course is financed with public or European resources.

Researches carried out at national level underline that not always traineeships are adequate to the content and purpose of the educational or training course followed by the trainees.

Nevertheless, traineeships continue to be one of the most relevant tools for linking the educational system to the labour market and for easing the inclusion on the labour market of youngsters.

The need to get the educational system and the labour market closer is even more relevant after the disappearance of state owned companies that ensured the passage from education to the labour market.

However, research on traineeships in Slovenia emphasises that usually traineeships are used as a legal tool for hiring young graduates at lower wages than the ones on the market. This is even more evident in those sectors in which traineeships are mandatory. In this case reports underline that traineeships are used to replace the regular staff as they are cheaper and sometimes are characterized by poor working conditions (workload, long working hours, etc).

The use of traineeships as a tool for reducing employers’ human resources expenses impacts upon the weak value traineeships have among graduates. In fact, if looking at the monitoring data on the traineeship programme “Graduate – Activate Yourself and Get the Job!”, one can notice that in the 2009-2010 period only 44 graduates took part to the project against a target of 600 persons for the 2009 -2011 period.

The relatively low level of traineeships offered by firms suggests that the Slovenia is in a weak position in terms of workplace-level and experience-based competence development. (Nielsen 2006:124)

6.4 Bibliography




Statistical Office of Republic of Slovenia (SORS) (2011) Continuing education, Slovenia, 2009-2010- final data. Available at: http://www.stat.si/eng/novica_prikazi.aspx?id=4044

European Commission, Employment, Social Affairs and Equal Opportunities DG (2008) SYSDEM experts network questionnaire: Member States' legislation on internships - Slovenia

SEE COUNTRIES

PART 1: REGIONAL OVERVIEW

The study has looked into the following issues: 1. legal framework for traineeships provided by the labor laws of the five target countries, 2. traineeship as regulated by the civil service legislation in the region, 3. traineeship as an instrument of ALMPs, 4. student traineeships, and 5.provisions on protection from abuse of volunteer work as substitute for paid work in the region, in the legislation on volunteering in the five countries.

The study has two parts. Part 1 combines the information from the national reports into a regional overview of the traineeship arrangements in Southeast Europe, and analyses the key issues. Part 2 comprises the national reports on BiH, Croatia, Macedonia, and Serbia.

1. Traineeship under the Labor Laws

1.1 Type of Traineeship Contract

The Labor Laws of the (reviewed) countries in the region in general provide for 2 types of traineeship:

1) traineeship (pripravnicki staz) based on employment contract (EC) and

2)traineeship (strucno osposobljavanje) based not on employment contract (non-EC), but on another type of contract which is most commonly referred to as professional training contract.

Table. Type of Traineeship Contract

Country EC traineeship

pripravnicki

non-EC traineeship strucno osposobljavanje bez zasnivanja

radnog odnosa

BiH Yes Yes

Croatia Yes Yes

Macedonia Yes Yes

Serbia Yes Yes

1.2 Professional Exam

Given that the the purpose of the EC traineeship (as well as the non-EC one) is professional on-the-job training, it is regularly related to a professional exam which certifies the possession of the professional skills. In most of the countries in the region, the professional exam is a mandatory part of the EC traineeship , or in other words, this traineeships is legally possible only when it is a prerequisite for taking a professional exam. In general the professional exam is considered a

mandatory part of the EC traineeship.

The respective provisions in the labor legislation of the countries in the region are quite consistent in this regard in general. They prescribe the exam and refer to its further detailed regulation in other regulation, which can usually be either another law or other regulation. Nonetheless some differences do exist. For example, Serbia's Labor Law provides less specificity on the character (mandatory or not) of the professional exam.

The professional exam is generally not a mandatory part of the non-EC traineeship. Labor laws in the region usually allow this type of traineeship in connection with either a professional exam

or work experience (Table 1).

Table 1. Professional Exam

Country EC traineeship non-EC traineeship

BiH mandatory, as regulated by law, or other regulation

professional exam, as regulated by law, collective agreement, or rule-book

Croatia mandatory; if not prescribed by law or other regulation, it must be prescribed by the employer's rule-book

either exam or work experience

Macedonia mandatory exam; exam or work experience as prerequisite for professional practice

Serbia when required for the execution of certain duties

exam, work experience, specialization as prescribed by specific program

1.3 Trainee Previous Work Experience

Another difference between the EC and the non-EC traineeship pertains to the previous experience of the trainee. In all of the countries reviewed, the EC traineeship is reserved only for

first-time employees in their field. This is however not a prerequisite for the non-EC traineeship (usually regulated by a professional training contract). Persons who have already had work experience in their field can still be engaged on a non-EC contract in almost all of the countries in the SEE region with the exception of Montenegro (Table 2).

Table 2. Trainee Previous Work Experience


BiH must be first-time employed in his/her field

does not have to be without prior experience

Croatia must be first-time employed in his/her field


Macedonia must be first-time employed in his/her field


Serbia must be first-time employed in his/her field


1.4 Regulation of Professional Exam

As already mention above, the professional exam is generally a constitutive part of the EC traineeship. Labor legislation in the region prescribes the exam as a mandatory part of the traineeship and refers to regulation from other fields (such as for example law, medicine, architecture, etc.) to further elaborate the process of taking the exam. Some difference nonetheless do exist across the region even though it is evident that the provisions are strongly consistent (Table 3). In the case on non-traineeship, the provision is generally more flexible. Basically, the non-EC traineeship is a possibility both when required for taking a professional exam, as well as for “autonomous work in certain fields (BiH), or “conducting certain types of work (Croatia)”, etc. Overall, the provisions on the non-EC traineeship are more flexible even though the differences among countries are evident. For example, the labor laws of BiH and Croatia clearly prescribe that the non-EC traineeship has to be foreseen either by law or other regulation. In the Macedonian Labor Law the provisions are less specific. The Serbian regulation is the most unclear in this regard. It requires that the traineeship be foreseen by law or rule-book as a precondition for professional practice, however it also says that a traineeship can be done in order to acquire certain knowledge or skills, “that is, complete a specialization”.

Table 3. Regulation of Professional Exam


BiH when required as a condition for a professional exam

if a professional exam or work experience are conditions for autonomous work in a certain field, as set by law or other regulation

Croatia only when the professional exam is a prerequisite for professional practice

when professional exam of work experience are prescribed by law or other regulation as preconditions for conducting certain types of work

Macedonia (inferred) only when required as a condition for a professional exam

(inferred) when required as a condition for an exam or professional practice

Serbia only when required for the execution of certain duties by law or rule-book

when foreseen by law or rule-book as a precondition for professional practice, or for acquiring specific knowledge and skills for practice ,that is completing a specialization

1.5 Trainee Salary/Fee and Insurance

The EC traineeship differs from standard employment in that: 1) the trainee usually receives a smaller salary than the basic salary for the respective position , 2) the contract is on determinate period of time, and usually of fixed duration (1 year), and 3) the contract is more easily

terminated.

The salary of the EC trainee ranges from 40% of the basic salary in Macedonia to 80% in Serbia and some of the other countries. In some cases this is prescribed by the labor law itself, whereas in others it is specified with additional regulation, such as collective agreements. There are no provisions on the non-EC trainee's salary in the labor laws in the region which allow this model. This means that the salary is left to the disposition of the parties (trainee and employer). Hence, there are no guarantees on payment for the trainees.

The EC traineeship foreseen in the labor legislation has full benefits (retirement, social, health) covered. The non-EC trainee in general gets coverage only of professional injury and illness insurance. In all of the countries with the exception of Croatia this is regulated with the labor law itself. In Croatia it is specified with the ALMP regulation.

Table 4. Trainee Salary/Fee and Insurance


BiH % of salary and full benefits no provision on fee; professional injury and illness

Croatia % of salary and full benefits no provision fee/allowance; no no provision on insurance (regulated with ALMPs)

Macedonia full benefits and salary of not less than 40% of the basic salary for the position

professional injury and illness; no provision on fee/allowance

Serbia full benefits and salary of not less than 80% of the basic salary

professional injury and illness; no provision on salary

1.6 Traineeship Duration

EC traineeships across the region can generally last up to 1 year. Almost all of the labor law's in the region include the possibility of an exception, that is, the 1-year rule applies “unless specified otherwise”. In all these cases the exception has to be provided for by law, that is, it cannot be done by other regulation. In Montenegro, by exception, the non-EC trainee contract can last up to 24 months.

The non-EC traineeship foreseen by the labor laws across the region can also generally last up to 1 year “ unless prescribed otherwise”. All of the countries, with the exception of Serbia, require that the alternative to the 1-year maximum duration is prescribed by law. In Serbia it can be prescribed with the program on specialization, or otherwise. The maximum duration of the non-EC traineeship in Serbia has also been limited with a ministerial opinion (see case study of Serbia).

Table 5. Traineeship Duration


BiH contract determinate period of time ; up to 1 year unless otherwise prescribed by law

maximum 1 year unless prescribed otherwise by law

Croatia contract determinate period of time ; up to 1 year unless otherwise prescribed by law

up to 1 year unless otherwise prescribed by law

Macedonia up to 1 year unless prescribed otherwise by law

in principle up to 1 year unless prescribed otherwise by law

Serbia up to 1 year unless prescribed otherwise by law

as prescribed by the program for specialization; if not based on program regulation - no maximum limit (opinion: cannot extend over several seasons)

2. Active Labor Market Policy (ALMP) Traineeship

2.1 Type of Traineeship Contract

A review of the current or most recent ALMPs in the countries in the region reveals that all of them include traineeships. All 5 countries' ALMPs foresee non-EC traineeships. Some of the countries (BiH and Serbia) have both EC as well as non-EC traineeships (Table 6). The traineeship appears to be a commonly used instrument for promoting employment, especially of young people. The review further finds that there are many varieties of the traineeship across ALMPs in the region, as well as changes in the traineeship model within countries. Review of the changes of ALMPs over recent years indicates that some countries have moved from shorter, less regulated non-EC traineeships to longer-term, more regulated traineeships (both EC and non-EC), and vice versa. The key factor indicated in this regard is the availability of financial resources. For example, Macedonia's ALMP has moved from very little-regulated, short-term, low-incentive (small allowance for the trainee; no incentive for the employer), non-EC traineeships, without commitments (primarily defined in terms of obligation for trainee retention) for the employer, to promoting longer-term, EC-traineeships, including a higher-incentive and stronger commitment for the employer.

Table 6. Type of traineeship contract foreseen with most recent ALMP documents

Country Type of traineeship contract

BiH both an EC and non-EC traineeship

Croatia non-EC traineeship

Macedonia non-EC traineeship

Serbia EC traineeship and

non-EC traineeship on contract for professional training

2.2 Traineeship Duration

ALMP promoted traineeships in the region vary significantly in duration: from 3 months in Macedonia to 36 months (for persons with vocational education) in Croatia. Both short-term and longterm traineeships seem equally present in ALMPs in the region. This indicates that there is no

confirmed best practice in this regard.

Table 7. Traineeship duration according to most recent ALMP document

Country Traineeship duration

BiH NSI

Croatia 36 months for persons with vocational education; 12 months for persons with higher education

Macedonia 3 months

Serbia (2009-2011) 3 months traineeship (training contract) + 12 month traineeship (on employment contract. In 2012-2013 reduced to 3-month traineeship due to lack of finance.

2.3 Trainee Fee/Allowance and Insurance

By definition, ALMP measures cover either fully or partially the cost of the traineeship fees/allowances organized by ALMP implementing agencies, usually national Employment Agencies (EAs).

The regulation of trainee fees/allowances ranges from basic to well-defined. For example, based on available information, Croatia have at present clear, published criteria for the setting of the trainee fee or allowance (Table 8) in place. In Croatia it is set at the level of the tax-exempt part of the student scholarship (at present 1.600 kuna per month).40

There are a number of examples of international donor projects in the region, which finance the organization of traineeships and trainee allowances. Such projects are regularly (and logically) implemented in close coordination with EAs. Projects funded by international donors are

40

The criteria for setting of the trainee allowance in the region is usually the average net salary. The Croatia's model

whereby the trainee allowance is set against the student scholarship is an interesting exception. Conceptually the use of

the criterion, such as salary vs. scholarship can also serve as grounds for the debate of traineeship at the crosection

between education and work.

sometimes fully integrated into the ALMPs and sometimes implemented in addition to the ALMP program implemented by the EAs.

Table 8. Trainee Fee/Allowance

Country Trainee Fee/Allowance

BiH provided by the program; NSI

Croatia provided by the program; allowance in the amount of the tax-exempt part of the student scholarship (at present 1.600 kuna per month)

Macedonia provided by the program; est. 70-80 Eur per month

Serbia provided by the program; NSI

Most of the ALMPs in the region limit the social coverage for (the non-EC) traineeships to professional injury and illness. The exception is Croatia which also covers retirement and health according to specific criteria: retirements is covered on 35% of the average monthly salary in the country. Health insurance is also covered by the program, however the amount is reduced if the trainee has prior work experience.

The Croatian model seems a good balance between the two poles: full benefits (which are strain on the ALMP program and a disincentive for the employer in a case he needs to cover them) and no benefits.

Table 9. Trainee Insurance/Benefits

Country Trainee Insurance/Benefits

BiH NSI (inferred: professional injury and illness)

Croatia retirement insurance on 35% of the average monthly salary in Croatia; health insurance (in reduced amount if the trainee has prior work experience).

Macedonia professional injury and illness;

Serbia NSI (inferred: professional injury and illness)

2.4 ALMP Target Employers

ALPMs differ with regard to the employers and sectors they target (Table 10). Whereas in some of the countries they are targeting primarily the private sector, in others they are open for both the private and public sector employers. It appears that the countries which have more generous ALMPs, tend to broaden the scope. This is however merely a provisional indication. More data would bee needed for a more conclusive finding.

Table 10. Target Employers

Country Target Employers

BiH no specific information(NSI)

Croatia public and private sector

Macedonia private sector

Serbia NSI

2.5 Employer Obligation

With respect the the obligations of the employers who benefit from ALMP-financed traineeship, the obvious trend is towards requesting employer commitment, defined in terms of retention of trainees. Some of the countries such as Macedonia have moved from an ALMP program which did not request employer commitment in this regard to a later phase where employer commitment was a condition for benefiting from an ALMP-funded traineeship.

The impression is that employer commitment is more likely to be requested by more generous ALMP programs which support longer-term traineeships.

There is significant room for exploring the strengths and weaknesses of the two models: more generously financed and usually longer traineeship with stronger commitment requested from the employer vs. the less-financed and shorter-term traineeship with lesser commitment asked from the employer. In-dept research based on robust data on ALMP financed traineeships could offer significant findings.41

Table 11. Employer Obligations

41 The regional review of the ALMP use of traineeship as an employment promotion instrument, did not identify any

studies on the effectiveness of various traineeship models financed by the countries in SEE. The review did not identify any

systematic data on ALMP traineeships in the region either (eve though it is not excluded that such data may exist). It is to

be expected that the ESs in the region do have some sort of data on the effectiveness of their traineeship programs only

this data is not public. An effort to share this data and to use it for comparative analysis , could yield a lot of information

and lead to important findings on the effectiveness of various traineeship models.

Country Employer Obligation

BiH NSI

Croatia private sector employer has to retain at least 50% of the trainees if he wants to apply again

Macedonia (earlier phase) no obligation for the 3-month traineeship (later phase); obligation to retain at least 50% of the trainees

Serbia to retain the EC trainee for additional 12 months

2.6 Scope of ALMP Traineeship Programs

The scope of ALMP-financed traineeship programs in the region varies significantly across countries (Table 12). Unfortunately, a closer analysis of this issue is prohibited by the lack of data. The data presented in Table 12 has been collected from various ALMP documents (see country case studies), however they only indicate overall numbers across a limited number of years. Nevertheless, even at this level (of lack of detail), it is clear that there are significant differences among countries. Croatia's ALMP clearly make much stronger use of traineeships to promote employment compared to Serbia or BiH (given country size).

Table 12. Scope of ALMP Traineeship Programs

Country Program Scope

BiH (2012) 1.000 persons

Croatia (2013)10.505 beneficiaries, of which 4.876 existing ones and 5.629 new ones

Macedonia NSI

Serbia (2013) est. 5.000 persons

3. Student Traineeship

3.1 Legal Basis for Student Traineeships

The review of the regulation of student traineeships in the region indicates that the countries in the region do not have a national-level regulation on student traineeships (Table 13). With the exception of Macedonia and to smaller extent Croatia, higher education laws in the region do not regulate student traineeships. The provisions on student traineeships in the Macedonian Law on Higher Education are also of recent origin (changes in 2011), whereas the Croatian law merely

mentions the possibility of student traineeships.

Table 13. Legal Base for Student Traineeships

Country Legal Base

BiH faculty study programs

Croatia faculty study programs; mentioned in Law on Higher Education

Macedonia Law on Higher Education

Serbia faculty study programs

3.2 Responsibility for Traineeship Organization and Traineeship Character

The statutes of the main public universities in the reviewed countries also do not regulate student traineeships. In general, the organization of student traineeships in the region is left to the study programs of individual faculties (Table 14).

The review of randomly selected faculties in the social sciences in the region did not reveal a lot of information (possibly also because of the limited amount of information available publicly). The review of the study programs of the selected law and economics faculties did not come up with much relevant information either. By exception, the Faculty of Economics in Sarajevo has mandatory summer traineeships for students and a well-developed traineeship guidelines.

Table 14. Responsibility for Traineeship Organization

Country

BiH responsibility of individual faculties (the Economic Faculty in Sarajevo has a well developed guideline according to which

summer traineeship is mandatory)

Croatia responsibility of individual faculties

Macedonia (to be) prescribed by the Ministry of Education

Serbia responsibility of individual faculties

The decision on the character of the traineeships is left to individual university departments, with the exception of Macedonia where with the recent changes on the Law on Higher Education, traineeships in the duration of at least 30 days are mandatory for all students and condition for enrollment in the next study year.

The review university study programs suggests that a number of faculties do run mandatory

traineeship programs.

Information from more than one country indicated that private universities are possibly more engaged in organizing student traineeship programs than public universities. A study also indicated that students from private universities seem to be more satisfied with the traineeship

programs than those from public universities.

Table 15. Traineeship Character: Mandatory vs. Optional

Country Mandatory vs. Optional

BiH Optional; can be defined as mandatory by individual faculties

Croatia Optional; can be defined as mandatory by individual faculties

Macedonia Mandatory (condition for enrolling in the next study year)

Serbia Optional; can be defined as mandatory by individual faculties

3.3 Common Arguments in Debate on Student Traineeships

The research of student traineeships in the region, in addition to the review of legislation and university documents, also included both a general and a targeted web research on information about student traineeships. Overall, there is very little systematic research on student traineeship in the region (available online). Apart from a couple of surveys, and some documents which

merely mention the issue, there is practically nothing.

The web research however revealed a large number of projects, in particular by student organizations, working to promote student internships. The general impressions is that there are organizations actively pursuing this type of work. However, more systematic information on the scope of such programs (for example, number of students involved by year, etc.) is not available. There is even less information available publicly on the student (often summer) traineeships organized by universities. There is occasional media coverage of the issue of the lack of quality and quantity of student traineeships. The research on student traineeships also included a media review of the most common arguments in the debate on student traineeships. They include the following:

• students learn only theory; • young graduates cannot find employment without practical experience; • there are not enough student traineeships; • traineeships lack educational quality (students are often asked to do repetitive

administrative tasks); • student traineeships should be made mandatory; • employers are not interested; • a model of uniform student traineeships solely for the purpose of meeting a formal

requirement should be avoided; • the sheer size of the student body makes it difficult to organize mandatory student

traineeships • lack of control over the quality of the educational content; • existence of merely formal traineeships for meeting the curricula requirements; • no interest on the part of faculties to organize good quality traineeship; • no interest on the part of students to get involved in traineeships; • paid student traineeships are difficult to find.

The list of the most common arguments provides relevant information on the key challenges related to student traineeship programs in the region. Whereas some of them are mere platitudes, others point to complex issues which require debate and significant research. It may be easy (as in the case of Macedonia) to prescribe mandatory traineeships but it is important to then evaluate what is the impact of such a model. This should be done systematically, by doing ongoing monitoring (year-to-year) as well as in-dept periodic evaluations. The size of the student body might really make it difficult to find productive traineeships. Also, the effect of the mandatory legal requirement might be to produce merely formal traineeships which lack substance and quality. The overall conclusion again is that the lack of systematic data-based evaluative research on the scope, effectiveness, and quality of student traineeship programs in the region leaves many of these key issues in the debate unanswered.

4. Protection Clauses Under Legislation on Volunteer Work

4.1 Protection from Substitution

The substitution of paid work with other types of unpaid work is one principal mechanism of labor rights abuse. The recent focus on traineeship quality at EU level has been to a large extent motivated by the awareness that traineeship is being increasingly used as a substitute to paid work. Whereas there is recognition that traineeship is key to earning professional skills and to making the school-to-work transition, there is also a consensus that guarantees are needed to

prevent trainee exploitation.

Another potential substitute to paid work is the unpaid volunteer work, and hence the research focus also on the guarantees for prevention of labor exploitation under the guise of volunteer work. The legislation on volunteer work which is or more recent date in the region regularly incorporates protection clauses whose aim is to prevent such practices of substitution.

First, laws on volunteer work in all the countries reviewed provide this protection by restricting the organizers of volunteering to non-profit entities. Profit making organizations, that is companies, cannot organize volunteer work. Second, all laws on volunteering in the region explicitly stipulate that volunteer work cannot be used for making profit. Several of the laws also have specific clauses distinguishing volunteer work from other types of work and in particular

unpaid traineeships under the labor legislation.

4.2 Limits on the Amount of Volunteer Work

Another set of restrictions is effectuated through the provisions limiting the amount of volunteer

work. All volunteer laws in the region have such provisions (Table 16). Some of the laws make the difference between short-term and long-term volunteering, whereby the latter is also subject to stronger control. As evident from Table 16, there are substantial differences between countries in this regard. The restrictions on the amount of volunteer work are defined in terms of hours per week, hour per month, hours per day, number of consecutive days, as well as combinations of these criteria. For example, BiH distinguishes between short-term and long term volunteering. As longterm volunteering, which is subject to much stricter control, is considered the volunteer work in excess of 240 hours over more than 3 months. Quite few of the countries in the region allow full-time volunteer work of 40 hours per week, provided it is short-term.

Table 16. Limits on the Amount of Volunteer Work

Country

BiH volunteering: max. 40 hours per week;

longterm volunteering:in excess of 240 working hours over at least consecutive 3 months

Croatia short term: “one-off or done occasionally over a limited period of time; limit: not more than 40 hours per week over more than 3 months, without at least 3 months of a break.

longterm: done by the volunteer “regularly and in continuity, on weekly basis, over at least three months;

Macedonia volunteering: no specific restriction; written contract required if the work exceeds 40 hours per month

Serbia short term: not more than 10 hours per week and nor longer than 30 days; longterm: more than 10 hours per week for more than 3 months

4.3 Volunteer Allowance/Expenses Coverage and Insurance

Volunteer legislation in the region generally specifies, more or less specifically, that volunteer work is unpaid work, in the sense that the volunteer cannot ask to be paid a salary/fee. However laws on volunteering also contain provisions on the coverage of the volunteer allowance, usually required for paying food and travel expenses. Most of the laws on volunteering in the region set upper limits on the volunteer allowances (Table 17). One of the major reasons for doing this is precisely to prevent substitution of other types of paid work with volunteer work. An additional reason is the potential tax evasion (given that volunteer allowance is generally not subject to personal income tax). For example, the BiH law specifically talks of the volunteer “travel allowance” which cannot exceed 75% of the civil servants' per diem. Croatia's provision is defined in the same way, only it is more generous - volunteer expense cannot exceed the full civil servant per diem. The provisions is also more flexible; it refers to “expenses” in general, which is more adapted to the reality of organizing volunteer work, where in addition to travel, incurs also other types of expenses.

Table 17. Volunteer Allowance/Fee

Country Allowance / fee

BiH travel allowance up to 75% of the civil servants' per diem

Croatia expenses cannot exceed the per diems paid to civil servants.

Macedonia cannot exceed 15% of the average wage

Serbia cannot exceed 30% of average net wage

In general, volunteer legislation in the region does not prescribe coverage of social security. Most of the laws in the region require only professional injury and illness insurance (Table 18). There are differences across countries also in this sense. In some of the countries there is no specific provision on insurance in the legislation on volunteering, which suggests that the legal solution should be sought in the general legislation on social and heath insurance. In Croatia, the professional injury and illness insurance is mandatory only in some cases, and beyond that is left

to the disposition of the parties to the volunteer work contract.

Table 18. Volunteer Insurance

Country Insurance

BiH Not specified

Croatia professional injury and illness in the cases when 1) volunteering is done in conditions which carry risk to the life and health of the volunteer, and 2) when this is agreed with the volunteer.

Macedonia Not specified

Serbia professional injury and illness

4.4 Accreditation for and Reporting of Volunteer Work

Several of the laws on volunteer work in the region comprise specific provisions on reporting, accreditation, and control of the organization of volunteer work (Table 19). The logic of these provisions is also to allow for more specific mechanisms of supervision by competent authorities. The key rationale is to prevent substitution of paid work with volunteer work. For example, BiH requires the organizers of short-term volunteer work to report once a year to the competent authority. However, if they organize longterm volunteer work, organizations need an accreditation and they are required to report to the competent authority within 10 days of contract signature. The Bosnian law is the most specific in this regard. The Croatian law only generally prescribe the reporting requirement, whereas the other country laws do not have

specific requirements in this regard.

Table 19. Reporting and Accreditation

BiH for short-term volunteering - reporting once a year;

for longterm volunteering within 10 days of contract signature;

an accreditation from the Ministry of Justice for organizing longterm volunteering

Croatia required to report the conducted activities to the competent authority

Macedonia not specified

Serbia not specified

The overall conclusion from the review of the legislation on volunteer work in the region is that it is equipped with several sets of clauses protecting from using volunteer work as a substitute of paid work. Considerable differences nonetheless do exist among the countries. The general principle on the non-profit character of volunteer work, excludes companies from being organizers of volunteer work and hence effectively protects from this type of abuse in the private sector. However, it should be mentioned that the possibility for abuse does exist in the public sector as well. The research did not identify any data on the incidence or scope of abuse of volunteer work as a substitute for other types of work in the region, or the experience of dealing with such abuse.

It should be mentioned that volunteer work is, similarly to traineeship, considered to have a strong educational component. The motivation for volunteer work is essentially different from the motivation for traineeship work in that a personal desire to contribute to society is inherent for the volunteer. Nonetheless it has been recognized that volunteer work can make an essential contribution to the educational development of the volunteer. Some of the governments in the region, such as Macedonia for example, have been organizing large scale programs for placing young people in public offices (usually during the summer months), under the legislation on volunteering. Clearly, the rationale for doing such programs using the framework of volunteer work as opposed to traineeship, is the educational aspect of the volunteer experience. In this sense, the debate on the quality of traineeship arrangements needs perhaps to also consider the quality of volunteer work.

PART 2: COUNTRY PROFILES

1. Country Profile BiH (Federation of Bosnia and Herzegovina)42

1.1 Traineeship under the Labor Law

Consistent with the regional legislative practice in the field of the labor market, the Labor Law of FBiH recognizes two types of traineeship: 1) traineeships on employment contract - pripravnicki (EC traineeship), and 2) traineeship based not on an employment contract but a contract for professional training (non-EC traineeship – strucno osposobljavanje).

The FBiH Labor Law defines the status of EC trainee - pripravnika (art. 26) as a first-time employee in his field, hired for the purpose of professional training for autonomous work. The trainee is hired on employment contract on determinate period of time of up to 1 year unless prescribed otherwise with other specific regulation. After the completion of the traineeship the trainee takes the professional exam as regulated by law, or other regulation (art. 27). The formulation of the provision in art. 27 indicates that the existence of a professional exam is a mandatory part of the traineeship.

The model of traineeship based on professional training contract, that is the non-EC traineeship, is defined by the FBiH Labor Law as “volunteer work”.43 According to art. 28 of the FBiH Labor

Law “if a professional exam or work experience are conditions for autonomous work in a certain field, as set by law or other regulation, the employer can hire a person with the corresponding respective educational background not on a work contract but on a professional training contract (volunteer work).” This is the legal basis of the traineeship without employment contract in the labor legislation of FBiH. The provision further defines that this type of volunteer work is counted a traineeship [ pripravnicki staz] and work experience when so required for professional practice in a certain field. This volunteer work can have duration of maximum 1 year unless prescribed otherwise by law (art. 28, par. 3). The same provision further specifies that the organization of volunteer work, its specific duration, and the taking of the professional

42 The case study of BiH focused on the legislative framework in the Federation of Bosnia and Herzegovina. 43 A consistent terminology is also used in the Macedonian Labor Law.

exam, are regulated by law, collective agreement, or rule-book. The trainee of this type of contract has to be insured from professional injury and illness. The provision does not mention a trainee fee, hence the conclusion is that there is no legal guarantee in this regard and that this is left to the disposition of the parties.

1.2 Traineeship under the Civil Service Law

The FBiH Civil Servants Law44 (CSL) recognizes the models of probation work and traineeship

[pripravnicki staz u institucijama]. The law regulates the status of a trainee in general terms: he is hired through a public call (art. 37, par. 1); the traineeship has the duration of 1 year after which the trainee earns the right to apply for a civil servant position. Both the probation work and the traineeship are based on employment contract. Hence, the FBiH Civil Servants Law does not allow a non-EC traineeship.

1.3 Active Labor Market Policy (ALMP) Traineeship

The current strategic document on employment in FBiH is the FBiH Employment Strategy 2009-2013 (ES). Among the other measures it foresees, the strategy includes the instruments of professional (on the job) training and traineeships for young people in relation to its goal to “promote more inclusive labor market through prevention of longterm unemployment and inactivity, social exclusion, and the poverty of the labor force.”45 Under this goal, the strategy

foresees the measure to “ensure active participation of young people 15-24 on the labor market, by increasing the integration opportunities...”46 According to the document, the high rate of

young unemployment is in part result of the skills disconnect, that is, the mismatch between the labor supply and demand. An important factor for this disconnect, according to the ES, is the lack of practical skills on account of too much theory and lack of applied teaching in formal education. Hence the strategy sets out to promote school-to-work transition, provide more career orientation, provide training, as well as promote entrepreneurship as active measures.

The ES is implemented with the work programs of the Federal Employment Institute (FEI). Both of the two most recent FEI work programs include traineeship measures for young persons as an instrument for their labor market integration, and they plan relevant resources for their

implementation.

44 Official Gazette of FBiH, No. 29/03 45 p.46-60. 46 p. 55

The FEI Work Program for 2013 comprises the program for “strengthening of the competitiveness of the labor market (gaining the first work experience, professional training and re-training)”47. The program includes co-financing of the employment or traineeship of young

people, and co-financing of professional training. The document indicates that an amount of est. 2.8 million Eur is to be allocated in 2013, indicating however that part of the amount is for commitments undertaken in 2012.

Reviewing the results of the FEI Work Program for 2012, the document indicates that 1.000

young people had taken part in a program aiming to help them gain the first work experience.

1.4 Student Traineship

The basic legal act on higher education in FBiH is the Framework Law on Higher Education (FLHE).48 The FLHE does not contain any provisions concerning student traineeships, applied

teaching, or teaching in a work environment. Hence, the conclusion is that as in the case of the higher education in the other countries in the region, the decisions concerning student traineeships are moved further down into the system of higher education.

A review of the Rules of the University of Sarajevo, which is the key regulation on the work of the major public university in FBiH, also does not reveal any provisions concerning student traineeship.

Another key document, The Rules of Studying in the First Cycles of Studies at the University of

Sarajevo49 only mentions student traineeship [prakticni rad i strucna praksa] as a possibility

(art.9). The related document, The Rules of Studying in the Second Cycles of Studies at the

University of Sarajevo50, only mentions practical work among types of teaching (art. 11) but does

not address the issue either.

The Rules of the Economic Faculty in Sarajevo51 do refer to student traineeship in art. 93 which

specifies that “the student's knowledge and skills are assessed”, among the several other standard methods, through the “summer traineeship in legal entities [ferijalnom praksom u pravnim licima]”. The document does not provide any additional detail on the student traineeships. The web page of the faculty however does contain a specific document titled Steps

47 p.10 48 Official Gazette of BiH, No. 59/07 49 http://www.efsa.unsa.ba/so/ba/referentni-dokumenti 50 http://www.efsa.unsa.ba/so/ba/referentni-dokumenti 51 http://www.efsa.unsa.ba/so/ba/referentni-dokumenti

to Applying for and Completing a Summer Traineeship (SACST)52 The document outlines the

procedure the students should follow in order to complete their summer traineeship. Given the provision in art. 93 of the Rules of the Economic Faculty, the conclusion is that the traineeship is mandatory for the students. The SACST document reads that students should:

1) identify a company where they would do their traineeship, 2) fill certain forms and submit an application (items 2 and 3 in the document), 3) meet the condition of having 120 ECTS and being enrolled in the the semester, 4) have a mentor identified by the vice-dean, depending the field of work the company is in, 5) do the traineeship in duration of no less than 20 days, 6) communicate with their mentor at least once, 7) run a journal on the traineeship, 8) write a traineeship report, etc. The procedure also requires the company to issue a confirmation and to evaluate the student. In conclusion, the Economic Faculty of the University of Sarajevo does have a well-developed regulation on summer student traineeships. In addition to the procedure outline, the Faculty of Economics has also published a Guide to Completing a Summer Traineeship53 which is intended to

help the students get the most out of the traineeship experience.

The desk review of the public debate on student traineeship in FBiH does not reveal much information. The standard arguments present in the other countries in the region could also be identified in BiH including too much focus on theory, lack of practical teaching, outdated curricula, etc.54

1.5 Law on Volunteering

The recent FBiH Law on Volunteering55 defines the concept of volunteering and the status of a

volunteer. The law provides the standard protections from substituting paid work with volunteer work, found also in the volunteer legislation in the other countries in the region.

The law distinguishes between volunteering and long-term volunteering whereby the latter is volunteer work in excess of 240 working hours over at least 3 consecutive months (art. 3). The law requires the organizer of long-term volunteering to obtain a specific accreditation from the Ministry of Justice (art. 6, par. 3, and art. 26), and defines the procedure to this end.

52 Koraci prijave i obavljanja ferijalne prakse, available at http://www.efsa.unsa.ba/so/ba/referentni-dokumenti 53 Prirucnik za obaljanje ferijalne prekse [Guide to Completing a Summer Traineeship], Cizmic Elvir, Husic Melika,

Kenjic Vanja, Faculty of Economics, Sarajevo, 2006. 54 One of the few relevant sources identified is an older Report on Higher Education in BiH. Focus Group Study

Results, Prism Research for Center for Investigative Reporting, Sarajevo, 2006. 55 Official Gazette of FBiH, No. 110/2012

The basic principle of prohibition of the labor exploitation of volunteers is defined in art. 10 whereby the law prohibits volunteer work which substitutes work which needs to be conducted according to the provisions of the Labor Law, or based on a service contract. In addition, the law limits the amount of volunteer work to 40 hours per week (art. 10, par. 2), which is actually full-time work.

The law also contains the standard provision that volunteer work cannot be used for the purpose of making profit. Volunteer work is unpaid, whereby food and travel and other allowances are not considered payment. The volunteer allowance is exempt from personal income tax, however as in the other countries in the region, it is limited in amount. Specifically, the law limits only the travel allowance to 75% of the civil servants' per diem (art. 14, par. 2, line h).

Whereas the organizers of short term volunteer work need to report to the competent authority (Ministry of Justice) once per year (art. 19), the organizer of long-term volunteering has to do it within 10 days from contract signature (art. 27). Clearly, long-term volunteer work is considered

a higher risk substitute of other types of work and it is hence subject to closer scrutiny.

2. Country Profile Croatia


The general provisions on traineeship as part of professional training after the completion of

regular education in Croatia are found in Section 5 of the country's Labor Law56 titled Probation

Work, Education, and Professional Training.

Similarly to the labor legislation in some of the other countries in the region, the Croatian Labor Law, distinguishes between 2 types of traineeship making part of professional training after the completion of regular education:

• traineeship based on employment contract (EC traineeship - pripravnicki), and • traineeship without an employment contract (non-EC traineeship strucno

osposobljavanje); based on a contract for professional training.

Art. 37 of the Labor Law regulates the status of a trainee, and the concept of traineeship

[pripravnik, pripravnicki staz] based on employment contract. According to its par. 1:“The person being employed for the first time in his field of education, can be hired as a trainee”. Par. 2 of the same article specifies that this is done for the purpose of training the first-time employee for autonomous work in his field. and par. 3 specifies that the trainee contract can be only for a determinate period of time. Art. 39 further limits the duration of the traineeship which can last a maximum of 1 year “unless specified otherwise by law”.

Art. 40 regulates the professional exam. Its par. 1 stipulates that “after the completion of the traineeship, the trainee takes the professional exam, if prescribed by law, another regulation, collective agreement, or work-related rule-book”. According to par. 2 “if the content and the procedure for taking the professional exam is not prescribed by law, other regulation, or collective agreement, it has to be prescribed with the rule-book”. Par. 3 specifies that a trainee who does not pass the professional exam, can be fired.

In sum the status of a trainee is defined by the following:

• she is a first-time employee in his field of education

56

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• he can only be hired under a contract on a determinate period of time, and the traineeship can last up to a year unless otherwise defined by law

• the trainee is required to take a professional exam.

The law insists that the taking of the professional exam is a mandatory part of the traineeship. The conclusion that is that employers can hire trainees only in fields where the professional training and exam are a preconditions for professional practice. The EC traineeship (as part of professional training after the completion of regular education) provides full protection of the labor rights of trainees. The Croatian Labor Law further strictly conditions it with the taking of a professional exam and hence restricts its use even further.

Art. 41 of the Labor Law defines the concept of “professional training” and gives the legal basis for the type of traineeship which is not based on employment contract (non-EC traineeship) but on a contract for professional training.

According to par. 1 of art. 41 of the law:

“If a professional exam of work experience are prescribed by law or other regulation as preconditions for conducting certain types of work, the employer can take in the person who has completed the relevant education for such type of work for professional training, without having

to conclude an employment contract (professional training)."

According to par. 2 of the same article, the period of time spent in professional training is "counted as time in traineship (pripravnicki staz) and work exprience when these are preconditions for conducting certain types of work". Par. 3 determines that the professional training can last at maximum as the traineeship based on employment contract (that is up to 1 year unless otherwise specified by law).

Par. 4 stipulates that “unless specified otherwise by this or other law, the provisions on labor relations from this and other laws apply on the person in professional training, with the exception of the provisions on employment contract, salary, benefits, and the termination of the contract. Par. 5 specifies that the contract for professional training must be concluded in writing.

The extent of use of the contract for professional training is limited by the provision which requires that the professional exam or work experience are defined by law or other regulation as preconditions for certain type of work (art. 41, par. 1). However the provision is broader that the one defining the traineeship based on an employment contract. Whereas the professional exam is a mandatory part of the traineeship for the latter, in the case of the traineeship based on a contract for professional training, there is no such requirement.


Additional provisions on non-EC traineeship are found in the Croatian Civil Servants Law

(CSL).57Art. 61a of the CSL regulates the mechanism of “professional training without

employment contract”. Par. 1 reads that a person without work experience can be taken in by a government department for professional training in a period equivalent to the duration of the traineeship, in the sense of the CSL. Under traineeship [vježbenički staž], the CSL considers the probation work of a trainee ( vježbenik), that is a civil servant without work experience.

The traineeship of this type of trainee is in the duration of 12 months in case when the civil servant is hired in a regular procedure (art. 53, par. 2); otherwise it can be shorter. The trainee has to take the civil servant exam (art. 56). Thus, the traineeship of the non-EC trainee, that is the trainee hired on contract for professional training can also be in the duration of 12 months.

The following paragraphs of art. 61a further define the status of a trainee hired on professional training contract. Its par. 2 specifies that the person taken in for professional training is not a public servant; par. 3 reads that after the completion of the professional training this person can take the civil servants exam; and par. 5 reads that the rights and responsibilities of the parties are regulated with a contract. Par. 6 to art. 61a specifies that the conditions and the procedure for taking in of persons for professional training without an employment contract are set by the government.

Based on this provision the Croatian government adopted a Regulation on the Conditions and

Procedure for Selection of Persons for Professional Training in Government Bodies without an

Employment Contract.58 The Regulation further specifies the process and the conditions under

which government offices can take in persons for professional training. Art. 4 of the Regulation sets the conditions that the candidate must fulfill in order to be considered. These conditions are general: that the person is registered as unemployed, has the needed education, and has no prior relevant work experience.

The Regulation is generally unrestrictive in the sense that there are no additional limitations or conditions on the use of the contract for professional training. This however has to be done based

on a annual plan prepared by each government body and properly approved by the line ministry.

Essentially the CSL allows the engagement of non-EC trainees for a period of 12 months which is the work experience required for taking the civil servants exam. Government bodies and offices can hire trainees (without prior work experience) based on their annual plan. The CSL does not contain additional provisions on trainee allowance.


57 Official Gazette, No. 92/05 58 Official Gazette, No. 100/11

The ALMP in Croatia are most recently regulated with the Law on Promotion of Employment,59

and the Law on Amendments and Additions to the Law on Promotion of Employment60. These

make the legal base for the National Plan for Promotion of Employment (NPPE) which more specifically defines the specific measures promoted by the ALMP.

The NPPE for 2011 and 2012 has been extended until July 2013 with a decision by the Croatian

Government.61 Non-EC traineeship is foreseen as a separate measure titled “Work and Work

Experience [Rad i staž ]” of the NPPE, under the youth package “Young and Creative [Mladi i

kreativni].”62

The objective of the measure is to promote the employment of young people without work experience in the fields of their education through the provision of professional training “regardless of whether a professional exam or work experience are required by law or other regulation as conditions for autonomous work”.

The measure is available to the following groups:

• persons with any level of education and with up to 1 year of registered work experience in the respective field of education, and regardless of total registered work experience;

• persons with completed secondary vocational education in the respective vocational fields, and in fields where membership in vocational associations is a condition for work prescribed by specific regulation; and with up to 1 year of registered work experience in the respective field of education, and regardless of total registered work experience;

• persons with undergraduate63 education or higher, who according to art. 41 of the Labor

Law are required (by law or other regulation) to take a professional exam or work experience as a condition for autonomous work in their field; and with up to 1 year of registered work experience in the respective field of education, and regardless of total registered work experience;

• persons with 4-years of secondary education who according to art. 41 of the Labor Law are required (by law or other regulation) to take a professional exam or work experience as a condition for autonomous work in their field; and with up to 1 year of registered work

59 Official Gazete, No. 57/12 60 Official Gazette, No. 120/12. 61 Government decision of 15 November 2012. See http://www.hzz.hr/default.aspx?id=9219 62 The package Young and Creative includes the following measures: With 50-50 to the First Job - support for the

employment of young people without work experience; 50-50 support for employment; Your Initiative, Your Job - support

for self-employment of young people; Together We Are Stronger - support for the employment of managers of

cooperatives; I Learn on the Job - support for the employment of newly employed personss; Education Pays - education of

unemployed; Work and Work Experience - professional work training without an employment contract; Help to Onseself

and Others - employment through individual public works projects. Available at http://www.hzz.hr/default.aspx?id=9202 63 According to art. 71 of the Law on Science and Higher Education, the undergraduate level [preddiplomski studij] degree or a bachellors degree is awarded upon 3-4 years of study, that is 180-240 ECTS.

experience in the respective field of education, and regardless of total registered work experience.

The measure covers the mandatory retirement benefits on 35% of the average monthly salary in Croatia.64 In addition, the measure covers an allowance in the amount of the tax-exempt part of the

student scholarship (at present 1.600 kuna per month), for food and travel. For trainees who already have previous registered work experience, the measure covers the health insurance and work protection benefits for the first 12 months, whereas for the reminder of the professional training the obligation passes onto the employer.

The maximum duration of the professional training is 36 months for persons with vocational education, and 12 months for persons with graduate education or higher.

According to data provided by the Croatian Employment Agency (CEA), the overall planned scope of this measure in 2013 amounts to 10.505 beneficiaries, of which 4.876 existing ones at the beginning of 2013, and additional 5.629 to be included over the year.

The NPPE also sets specific criteria on the number of trainees that an employer can hire on a contract for professional training: if the employer has a substantial number of employees, it can take in as many trainees as it can guarantee a qualified mentor to, however not to exceed the number of employed workers. One mentor, according to the regulation can supervise the professional training of up to 3 persons.

The NPPE also provides additional criteria for repeated use of the measure after the completion

of a previous contract with CAE. A private sector employer65 has to retain at least 50% of the

trainees after the expiry of the professional training contract, in order to be again eligible for the measure next year. The provision does not apply to public sector employers. The following employers cannot use the measure professional training without employment contract: employers who do not have employees, private sector employers for a number of trainees which exceeds the number of employees, employers who have discharged workers over the past 6 months. Craftsmen and other autonomous professionals can also benefit from the measure under specified conditions.

The concept of non-EC traineeships (based on a professional training contract) is well-defined compared to the traineeships without employment contract in some of the other countries of the region. It guarantees certain financial compensation during the traineeship period.

64 According to most recent data of the Croatian State Statistical Office the average salary in Croatia is 7.867 kn,

hence the basis for the benefits is 2.753,45 kn. 65 It does not apply to public administration where the situation is subject to a other regulation, nor to museums,

libraries or other cultural institutions.

The model of partial benefits, part of which is covered by the employer under certain conditions, offers a fair amount of protection for the labor rights of young people. A specificity is that the measure can also be utilized by the public sector.

2.4 Student Traineeship

The Croatian Law on Science and Higher Education refers to student traineeship in its art. 66 which regulates the “connection between practical work66, science, art, and higher education”.

Par. 4 of art. 61 defines that in accordance with their statute, higher education institutions can “on the basis of a contract with an appropriate organization (hospital, health center, lawyers firm, engineering firm, private company, specialized institution, etc.) organize part of the study program in such a legal person, under the supervision of their teaching staff, and with appropriate involvement of experts from the respective legal person”.

The Statute of the University of Zagreb does not include provisions on student traineeship. The possibility of “practical work” and “field work” is only mentioned several times in the text of the document. Its art. 68 specifies that the study programs are adopted by the university members (faculties, etc.) and outlines the elements to the defined with study programs, including also “types of teaching (lectures, seminars, practice, consultations, field work, tests, etc.).”

The Rule-Book on Studying in Undergraduate or Graduate Studies at the University of Zagreb67 also does not include specific provisions on student traineeship. Its art. 2 specifies that the “types of teaching” are to be defined with the study program, and its art. 4 makes a similar provision as regards the “teaching plan” which implements the study program.

The conclusion is that there are no systemic provisions on student traineeship provided by law, with the exception of art. 66 in the Law on Science and Higher Education. The organization of traineeships (duration, conditions, etc.) is left to the educational institutions, to be regulated with their statutes, study programs, or teaching plans. For example, the Statute of the Economic Faculty at the University of Zagreb in its art. 76 includes the traineeship [ stručna praksa] as a type of teaching, and it defines it as mandatory together with the other types of teaching specified.

The review of the public debate concerning student traineeships in Croatia reveals the common arguments found across the region. Some of the most frequently used are: traineeships lack educational quality (students are often asked to do repetitive administrative tasks); paid student traineeships are difficult to find.

A survey68 conducted by the EduCentar in 2010 revealed a significant difference in the satisfaction with student traineeship between the students at the public and the private universities. Whereas only 16% of students from public universities said they were satisfied

66 Perhaps a more appropriate translation of the word praksa could be the term applied education. 67 Available at http://www.unizg.hr/o-sveucilistu/propisi/pravilnici/ 68 Summary available at http://www.educentar.net/Vijest/10059/Rezultati-istrazivanja-Kvaliteta-studiranja-na-

privatnim-i-javnim-fakultetima/

with their traineeship program, this was the case with 87% of the students at the private universities. This is an indication which indeed invites additional analysis. A large scale, comprehensive survey could provide relevant information on the quality of the student traineeship experience.

The review of the available information yields very little data on other aspects of student internships, such as duration, contract conditions, as well as protection of the labor rights of young people. In the case of students, who are not part of the labor force, this does not seem to be an issue in the public debate on labor rights protection.


The Croatian Law on Volunteering distinguishes between longterm and short-term volunteering. Longterm volunteer work is the volunteering done by the volunteer “regularly and in continuity, on weekly basis, over at least three months without an intermission (art. 3, par. 3). Volunteering is short term when it is “one-off or done occasionally over a limited period of time (art. 3, par. 4).

The law contains the following provisions which safeguard from possible abuse of labor rights, in particular by substituting other kinds of work with work done under a volunteering contract.

Art. 5, par. 1, line 4 of the law specifies that “professional training without an employment contract, regulated with specific regulation” is not considered volunteering in the sense of the Law on Volunteering. Art. 7 of the law lays down the criteria as to who can organize volunteer work and it excludes for-profit organizations.

Art. 11 of the law contains the principle of prohibition of volunteer exploitation, thereby specifying that (par. 1) volunteering can not replace work as regulated with the Labor Law, or other types of contracts, and (par. 2) disallowing volunteer work in excess of 40 hours per week over more than 3 months, without at least 3 months of break. Par. 3 of the article contains the general provision that volunteer work cannot be abused for the purpose of making profit.

According to the law (art. 15) a volunteer cannot be paid, whereby allowances and expenses are not considered payment. Volunteer travel allowance cannot exceed the per diems paid to civil servants.

Art. 32, par. 2 of the law reads that the organizer of volunteer work is required to insure the volunteer from professional injury and illness in the cases when 1) volunteering is done in conditions which carry risk to the life and health of the volunteer, and 2) when this is agreed with the volunteer.

Art. 33 of the law prescribes that the organizer of volunteer work is required to report the conducted activities to the competent authority. The content of the report, submission deadlines, etc. are prescribed by Regulation passed by the competent authority.

3. Country Profile: Macedonia


The basis of the legal framework for traineeships outside the process of formal education in the

Republic of Macedonia is defined by provisions in the country's Labor Law69. Chapter 6 of the

law regulates the concepts of traineeship, volunteership, and probation work.

The law foresees two types of traineeship, the first one of which is defined as “traineeship” (pripravnicki staz), whereas the second as volunteership ( “volonterski staz”).

Both the traineeship and the volunteership, as defined by the Macedonian Labor Law, are forms of traineeship which is part of compulsory professional training done as a precondition for licensing or professional practice.

Traineeship refers to the status of a person who is employed for the first time in his or her field of expertise and who “as laid down by law, another regulation, or collective sectoral agreement....can get a trainee's employment contract, for the purpose of professional training...”. The EC traineeship can generally last up to 1 year (art. 57, par. 1), “unless provided otherwise by law”, and “at the end of the traineeship, the trainee is required to take a trainee exam which is a

mandatory part of the traineeship”.

The major difference from a full-fledged employment status is the salary of the EC trainee which the law (art. 114) prescribes can be significantly smaller from the employee salary “but not less than 40% of the basic salary of the position the trainees is trained for”.

The “volunteership”, as laid down by the Macedonian Labor law, is another form of traineeship which makes part of compulsory professional training. The volunteership is defined by art 61, par. 1 of the Labor Law:

69

Official Gazette of RM, No. 52/12

“If the volunteership is a precondition for taking a professional exam or professional practice, as required by another law, it has to be conducted based on a volunteership contract between the employer and the volunteer. The provisions of this law [i.e. the Labor Law] on the duration and the conducting of the traineeship, limits on the working hours, daily breaks, and holidays, liability and damages, as well as work safety, apply to the volunteer.”

Both the EC traineeship and the non-EC traineeship, or volunteership, are actually forms of traineeship as part of the compulsory professional training after graduation. Whereas the EC trainee get full employment benefits, the volunteer contract on the other hand does not provide such protection. The Labor Law merely outlines the institute in its article 61 and it refers to other legislation which requires the work experience as a precondition for taking a professional exam (licensing) or practice.

The EC traineeship is only possible for the first employment (within the field of expertise), and it comprises a mandatory exam which is part of the traineeship. This is not the case with the non-EC traineeship.

In order for an employer to be able to conclude a volunteership contract with a volunteer, this needs to be a “precondition for taking a professional exam or professional practice, as required

by another law”.

The key limitation on the use of this form of engagement is it can only be used when required by law as a precondition for licensing. In addition, par. 2 or art. 61 requires that the volunteership contract is immediately registered with the labor inspectorate as a further guarantee against its possible abuse.

The Labor Law also reads that the provisions “on the duration and the conducting of the traineeship, limits on the working hours, daily breaks, and holidays, liability and damages, as well as work safety, apply to the volunteer”. This wold mean that a volunteership can in principle last up to 1 year, unless provided otherwise by another law.

The specific terminology used in the Labor Law whereby the traineeship which is not based on an employment contract is defined as volunteership, is easily confused with volunteer work. For this

reason, the Law on Volunteering, which was passed in 200770, makes an explicit distinction

between volunteership in the sense of the Labor Law and volunteer work as defined by the former. Art. 3, par. 3 of the Law on Volunteering reads that “volunteering in the sense of this law does not mean conducting of volunteership in accordance with the Labor Law”.

70 Official Gazette of RM, No. 85/07

Chapter 23 of the Labor Law which regulates the work done by children below the age of 15, pupils, and students, contains additional provisions on traineeship. In particular, art. 250, par 1. specifies that:

“Pupils above the age of 14, and students, can conduct practical work as part of their educational program.” This particular provision in the Labor Law provides the legal basis for traineeships conducted as part of formal secondary or university education. Par. 2 of art. 250 further

stipulates that:

“The Law's provisions on working hours, holidays and breaks, the special protection of workers below the age of 18, as well as liability, apply in the cases regulated by par. 1”.

The Labor law also contains a few general provisions concerning apprenticeship. Art 56. par. 2 stipulates that “the apprentice who has successfully completed the apprenticeship” is qualified for professional practice, and art. 252 regulates the apprentice's rights during the apprenticeship. The Law considers as an apprentice a person below the age of 18.

Article 252, par. 1 of the Labor Law on “special contracts” is also of interest for the analysis. The provision foresees that:

“The employer can conclude contracts with persons for the purpose of conducting work outside

of the employer's field of activity, and which focuses on autonomous production or repair of objects, or autonomous conducting of physical or intellectual services”.

This rather unclear provision actually has the purpose of restricting employer practices of substituting employment contracts with contracts regulated by the Law on Obligations, whereby the latter do not require the payment of worker benefits (health, retirement, social protection). It is a response to the widespread practice of hiring workers on service instead of employment contracts. Art. 252, par. 2 restricts this by specifying that this can only be done for work which is outside the field of the regular activity of the employer (for example: fixing the roof of textile factory).

In conclusion, the Labor Law provides the legal basis for two common types of traineeship: 1) traineeship which is part of compulsory professional training and precondition for professional licensing, and 2) traineeship which is part of the formal education at secondary or tertiary level.


The Macedonian Civil Service Law did recognize the model of traineeship (on an employment

contract) and the status of a trainee until the recent changes in 201071 which rescinded these

provisions.

Under the previous art. 17v of the law, the traineeship had a duration of 6 or 12 months depending the position the person is trained for, and included the taking of the civil service exam. Trainees were entitled to 80% of the salary for the respective position and had full benefits

covered.


The traineeship which is part of a country's active labor market policies (ALMPs) is used as an instrument to promote the entry of (usually) young people in the labor market, and in particular to facilitate the first school-to work transition (SWT). Data on ALMPs in the Republic of Macedonia is available starting with 2008, and traineeships have been part of the Operational

Plans for the Active Programs and Measures for Employment72 for each year.

Traineeship has been used as a measure to support the first employment of young people. The age limit for eligibility is usually set at 27 even though it varies over years. The measure has underwent several changes over the past period, in part reflecting the lessons learned in the process of its implementation.

A key feature of the measure across the entire period is its temporary character, with the duration limited to 3 months and in some years to 6 months. Another common feature, present in most even though not all the years, is the traineeship allowance, and the covered injury and professional illness insurance covered by the government.


The most recent Macedonian Law on Higher Education73 does not contain specific provisions on

student traineeships. Applied training (which is commonly the synonym for on-the-job training or traineeship) is only mentioned in the provision which defines the scope and the organization of the studies (art. 112), together with other teaching methods.

71 Law on Amendments and Additions to the Law on Civil Servants, Official Gazette of RM No. 167/10 72 Available at http://www.avrm.gov.mk/?ItemID=35945DC6A7D5D34AABE21D89A71F4980 73 Official Gazette of RM, No. 35/08

However, with the changes to the law from that same year 74 a new specific provision on

“practical education” had been added. The new provision specifies that: “each study year the

student mandatorily attends practical education of minimum 30 days as a condition for enrolling in

the next year of study (art. 99)”. The provision also specifies that the specific way of organizing the practical education will be prescribed by the minister (of education).

The statute of the major public university in the country, Cyril and Methodius, does not have specific provisions on student traineeships.The statute of the Law Faculty at the University of Cyril and Methodius, which was selected for review (given the availability of the documents on the faculty web page) does not have any provisions on student internships either. The study program of the Law Faculty specifies (art. 19, par. 5) that practical teaching is regulated with a separate regulation. Art. 32 of the document additionally specifies that the descriptive part of the course program has to define how the practical aspects of the course will be organized. Also, the teacher can decide to give specific assignments to (some of ) the students including practical

work (art. 35, par. 5).


In addition to art. 3 of the Law on Volunteering which makes the clear distinction between volunteer work in the sense of the Labor Law and volunteer work in the sense of the former, the recently passed legislation on volunteer work in the country also includes the other standard provisions protecting from using volunteer work as a substitute for other types of work.

The law (art. 6) specifically limits the number of organizations which can organize volunteer work, to NGOs, religious communities and groups, public institutions, and government departments, and requires that volunteer work is organized based on a specific program.

Art. 13 of the law specifies that the organizer has to cover the professional injury and illness insurance of the volunteer. The volunteer is also entitled to food and travel expenses as per the agreement with the organizer (art. 10). The law originally did not set a limitation on the amount of the volunteer allowance. However, this was done with a subsequent revision of the

law,75which specified that the volunteer's food and travel expenses cannot exceed 15% of the

average salary paid in the previous year.

The law prescribes that a written contract is required only if the volunteer works more than 40 hours per month (art. 14). Art. 17 of the law specifies that the organizer of volunteer work cannot substitute an employment contract with a contract for volunteer work.

74 Official Gazette of RM, No. 103/08 75 Official Gazette of RM No. 161/08

Zaštita radnih prava mladih na tržištu rada kroz aktovne mjere zapošljavanja”. Projekat finansira EU posredstvom Delegacije Evropske Unije u Crnoj Gori .

4. Country Profile Serbia


The legal base for traineeship as part of mandatory professional training as a prerequisite for professional and/or licensed practice in Serbia, is provided by the provisions of the

country's Labor Law.76 The key legal provision concerning traineeship is art. 201 of the

law regulating the “contract for professional training and specialization”.

According to art. 201, par.1 “The employer can conclude a contract for professional training or specialization:

1) With an unemployed person, for the purpose of completing a traineeship and taking a professional exam, when foreseen by law or rule-book, as a precondition for professional practice.

2) With a person who wants to specialize and acquire specific knowledge and skills for practice in his field, that is, to complete his specialization, in the duration prescribed by the program for professional training or specialization.

Par. 2 of the same article specifies that: the employer can provide to such a person financial compensation, as well as other rights, in accordance with law, other regulation, or a contract for professional training or specialization. The next, par. 3 of art. 201 reads that this compensation is not considered a salary in the sense of the Labor Law. The law also requires that such a contract is concluded in writing.

The type of traineeship defined by art. 202 falls under the category of traineeship which is part of mandatory professional training after graduation. In case 1 the provision clearly sets the conditions when the employer can conclude such a contract: when the purpose is completing a traineeship and taking a professional exam, as foreseen by law or rule-book. In case 2 however, the provision reads that the contract can be concluded with a “person 76

Official Gazette of Serbia, No. 24/05

who wants to specialize and acquire specific knowledge and skills for practice in his field,

that is, to complete his specialization”.

From the text of this provision it is not completely clear if these are two different situations: 2a - a person wanting to specialize even though this is not a requirement of mandatory professional training (and licensing) after graduation, and 2b - for the purpose of completing a specialization. Whereas in the latter, the duration of the traineeship would be defined by the regulation on the specialization, in the former there would be no such limitation.

Case 1 of the provision refers to the provisions of the law regulating “traineeship” (pripravnicki staz) and the status of a trainee (pripravnik) in the sense of the Labor Law itself. According to art. 47 defining the status of a “trainee”: “The employer can employ a first-time employee as a trainee, for a position that the person has been educated for, if this is a condition for the performance of certain duties defined by law or rule-book.” (par.1). Par. 3 of the same provision specifies that this traineeship can last maximum 1 year, unless otherwise specified by law. In addition, par. 3 reads that the trainee is entitled to a salary and all other rights from an employment contract. Further, article 109 of the law stipulates that the salary of the trainee should be at least 80% of the basic salary for the respective position.

As evident from the key legal provisions in the Labor Law, in Serbia there are two legal forms for organizing the traineeship which is part of a mandatory professional training after

graduation. The first one is the EC traineeship (art. 47 and art. 109) for a first-time employee , who cannot receive less than 80% of the basic salary and is entitled to employment rights and entitlements under the Labor Law and an employment contract.

The second model is the one from art. 201 which allows the traineeship be completed not based on an employment contract but on a contract for professional training and

specialization (non-EC traineeship).

In the case of the non-EC traineeship, the employer is not obligated to pay a fee. According

to a recent analysis77 done by the USAID's Sustainable Local Development Project , the

payment of a fee is indeed a regular practice, even though the text does not indicate the amount of such a fee. The employer can only offer such a contract in specific situations: fulfilling of legal requirements for professional practice.

77 Contractual Models for Professional Training of Young People in Serbia [Ugovorno Urеñivanje Praktičnog

Osposobljavanja Za Rad Mladih u Srbiji], Pavlović Križanić, Tatjana, USAID Sustainable Local Development

Project, Belgrade, March 2013.

Even when he does not pay a fee, the employer is required to cover the trainee's professional injury and illness insurance, as required by art. 47 from the Law on Benefits

and Mandatory Social Insurance78 . In such a case the employer is only obliged to cover the

insurance calculated on the lowest monthly basis.79 If the employer pays a fee, he also

pays a personal income tax of 20%.

According to the USAID analysis, the defficiencies of the models are that: “The employer can terminate this type of contract at any time and without justification, and severance pay; trainees do not have a systematized work position and job description; their net wage can be lower than the guaranteed minimum wage, and the taxes and benefits can be even lower

than in the case of a service contract.”80

The duration of the non-EC traineeship is set with the regulation prescribing the “traineeship” or specialization. However if this regulation does not specify the duration, then there is no maximum limit on the time of the traineeship. USAID's analysis refers to the Opinion of the Serbian Ministry of Labor, Employment, and Social Policy (MLESP) Nr. 011-00-00223/2008-02 from 11.04.2008 according to which the professional training has to be of limited duration: “in, for example, areas of work such as carpentry, construction, machine operation, etc., professional training...cannot extend over several construction

seasons.”81

Art. 199 of the Labor Law regulates the service contract as a special kind of contract for “work which is outside the regular scope of activity of the employer”. On the fees under this type of contract the employer pays the 20% PIT and the social benefits (retirement and disability).

The logic of the provision, as in other countries in the region (Macedonia) is to restrict the

use of the service contract as a substitute for the employment contract by allowing only for work which is “outside the regular scope of activity” of the employer.

Another model foreseen by the Labor Law is the contract for temporary or occasional work which is also not an employment contract. The employer can conclude such a contract for work which does not exceed 120 work days in a calendar year. The employer is required to pay the benefits (retirement, disability, health, and unemployment insurance); the basis for calculation of the benefits is the agreed fee.

78 Official Gazette of Serbia, No. 84/04 79 The rates are 2% for health and 4% for retirement and disability, from the lowest monthly basis which at

present is 21.216 dinars (35% from 60.617 dinars). 80 Contractual Models for Professional Training of Young People in Serbia, March 2013 81 ibid

If the person who is hired on the basis of a contract for temporary or occasional works is below the age of 26 and in regular education, the employer only pays the disability and professional illness insurance (plus the PIT). If the person is above the age of 26, or not in regular education (regardless of age), the employer pays full benefits.


The Serbian Civil Service Law regulates traineeship in its part III titled Professional

Training: Traineeship (art. 103-106a). The law recognizes both the EC traineeship (art. 103) as well as the non-EC traineeship (art. 106a).

The EC trainee is a first-time employee in her field, who is hired via a public ad and on a determinate period of time. The duration of the EC traineeship is limited and it depends on the level of education: 1 year for trainees with completed 2nd degree university studies; 3-9 months for trainees with completed 1st degree university studies; and 6 months for trainees with secondary education (art. 104). The civil service exam is a mandatory part of the traineeship.

The non-EC traineeship can be offered to an unemployed person based on a “professional training contract without compensation for the purpose of professional training, that is acquiring work experience and fulfilling the conditions for taking the civil service exam (art. 106a, par 1).” The non-EC traineeship can last maximum 6 months for trainees with

secondary education and up to 1 year for persons with higher education.


The main current ALMP instrument in the Republic of Serbia is the National Action Plan for

Employment 2013 (NAPE) which implements the country's National Employment Strategy

2011-2020. Objective 3 of the NAPE82 aims to “improve the quality of the labor force

through education and training” and among other foresees “traineeship programs and programs of professional training, practical skills learning programs for unemployed without skills...”.

Consistently with the Labor Law, the NAPE differentiates between 2 types of traineeship: traineeship (in the sense of the Labor Law) which is based on employment contract ( case 1

82 p. 8

from art. 201 of the Labor Law)83, and traineeship (strucna praksa) not based on

employment contract but on contract for professional training or specialization.84

This NAPE component is “intended for unemployed persons without work experience in their field, with at least secondary education, and regardless of age”.

In the period 2009-2011 the Serbian National Employment Agency implemented the project Prva Sansa (First Chance) for young people under the age of 30 without work experience. The program offered subsidies to employers for hiring of young people. The program involved first a 3-month traineeship (volonterski staz) without an employment contract, and then a 12-month traineeship (pripravnicki staz) on an employment contract. Trainee salaries and benefits were covered by the government. Employers had the obligation to retain the trainee in employment for additional 12 months after the completion of the traineeship period.

In 2012 and 2013 the program was transformed (reduced) into a program of subsidized 3 month traineeship, reportedly due to lack of finance. The NAE's plan for 2013 is to involve

5,000 young people in the program. 85


There is no national level regulation or criteria for organization of university student traineeships in Serbia. The Law on Higher Education does not contain provisions on student

traineeships.86 The statutes of main public universities do not contain specific regulation

on student traineeships either. For example, the Statute of the Belgrade University87

mentions student traineeships only in general with reference to the scope of the study curricula, specifying that student duties can also include (art. 96, par. 7) “other types of work in accordance with a general regulation of the higher education institution (student traineeship, etc.)”. The regulation of student traineeships is left to the study programs of faculties and departments.

A review of the current public debate on student traineeships in Serbia suggests a general lack of satisfaction with the model . Criticism refers to the generally insufficient quality of

83 The employer can pay benefits at a reduced rate for trainees, as a form of an employment promotion

subsidy. 84 p. 16 85 Available at http://www.b92.net/biz/vesti/srbija.php?yyyy=2013&mm=03&dd=09&nav_id=693721 86 Student traineeships are mentioned only once in the law, in art. 92, which specifies that students

internships with more than 6 months in duration, can be a basis for a student request to have their studies in

recess. 87 Available at http://www.bg.ac.rs/sr/univerzitet/univ-propisi.php

the model: lack of control of the quality of the educational content; existence of merely formal traineeships for meeting the curricula requirements without, no interest on the part of faculties to organize good quality traineeship, no interest on the part of students to get involved in traineeships, as well as no interest on the part of large companies in the country.

In recent years some student organizations in Serbia have launched a proposal for mandatory student traineeships regulated at national level, as a way of improving their

quality.88 Whereas there are many different models to organize students traineeships, and

among them many good ones, one of the arguments promoting the initiative was that a common feature of student traineeship in western European countries was that “the modalities for traineeship were more numerous, and the duration of the traineeship

longer” compared to Serbia.89

There are nonetheless various positions concerning the mandatory character of the student traineeship. Whereas according to some of them a mandatory, more regulated model offers better quality, others stand at the stance that more flexible model, with higher disposition of the parties (trainee, faculty mentor, traineeship organizer) can produce effective results, whereby the key factor is the motivation on the part of the trainee to maximize the learning experience.


The Serbian Law on Volunteering90 has been in force since the end of 2010 and it regulates

volunteer work. The law contains the standard provisions protecting from abuse of

volunteer work as substitute for paid work found elsewhere in the region.

The law makes a specific distinction between volunteer work and other types of non-EC work. Art. 3 from the Law on Volunteering specifies the types of work which are not considered volunteering such as: work based on a contract for professional training and specialization (par. 1), other work conducted on a contract other than an employment contract (par. 2).

Same as in the other laws on volunteering in the region, volunteer work is unpaid. The volunteer can not receive a fee but can receive an allowance (for coverage of expenses) in

88 Available at http://www.studentskisvet.com/magazin/20080214/studentska-praksa-brze-do-

posla-za-studente 89 ibid 90 Official Gazette of Serbia, No. 36/10

the case of long-term volunteering. If allowance is paid to the volunteer, it is PIT exempt.91

The amount of the allowance is limited similarly as in some of the other countries in SEE. It cannot exceed 30% of the minimum net wage paid in the country. The organizer of volunteer work has also to cover the disability and professional illness insurance.

The law distinguishes between short-term and longterm volunteering. According to the law, short-term volunteering cannot exceed 10 hours per week, and a maximum of 30 consecutive or non-consecutive days. Long-term volunteering (art. 2, par. 2) is the “volunteering which exceeds 10 hours per week for a period of at least 3 consecutive months”.

91 Opinion of the Ministry of Finance and Economy of the Republic of Serbia, Nr. 413-00-288/2011-04 from

20.9.2011.

"Ova brošura je nastala uz pomoć Evropske unije. Publikacija ne sadrži formalno saopštenje i ne predstavlja nužno službeni stav Evropske unije."

Tel/fax: 020 207 130/ 207 131Mob: 067 210 848; 069 073 381

email: [email protected]

www.angazujse.info

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